An employer must offer employees, family members or dependents of employees who are covered under a group policy continuation benefits after the total disablity or death of the covered employee. An employer must also offer continuation coverage to employees and dependents who are totally disabled at the time coverage terminates (Sec. 41-2202 and 41-2213). Coverage is extended no less than 12 months beyond the date the policy terminates is considered to be reasonable (Sec. 2213).
Converting ID Group Health
Each insurer must offer a current group or individual policy to an individual or dependent of an individual currently under group coverage following the expiration or the insured's rejection of federal continuation coverage or upon termination of group coverage. The conversion coverage must be offered without imposition by the insurer of underwriting criteria where coverage would be denied because of an individual's age, health or medical history, or employment status. The insurer must offer equal or lesser benefits than the individual or dependent has under the existing group policy (Sec. 41-2220).
Federal COBRA law
Under COBRA, a terminated employee is entitled to continue his or her group health insurance for 18-36 months. The employee is entitled to the same coverage as current employees, since it is a seamless continuation of the current plan.
Cobra Insurance Notice
Most problems and confusion regarding COBRA Insurance involve misinformed employers who aren't aware they're supposed to offer employees COBRA. Read our Sample COBRA Notice. Also some employees thinking they should get their COBRA upon termination. Read about COBRA notification time requirements.
COBRA Insurance Cost
The 65% COBRA subsidy was for employees losing their health insurance from
Sept. 1, 2008 to after May 31st, 2010. That was part of the stimulus bill. Now the employee will be required to pay the full cost of health insurance, including any portion formerly paid by the employer. In addition, the employer can charge a 2% COBRA administration fee, bringing the total payment to 102% of the premium.
Who Qualifies for COBRA?
Employers with over 20 full time employers usually have to offer COBRA to an employee within 45-60 days of the qualifying event. Qualifying events include the employee losing their health insurance for a variety of reasons including a reduction in hours or termination. Dependents who lose insurance for other reasons, such as divorce, also qualify for COBRA. Exceptions include employees terminated for willful gross misconduct, employers with less than 20 total employees, non profits or churches organizations.
No Mini Cobra Coverage
47 of the 50 U.S. states have COBRA laws that cover smaller employers, generally called state mini-cobra laws. States that have not passed a mini-cobra law include Alabama, Alaska, and Delaware.
Among States that have mini-cobra laws, the lengths of coverage vary from 30 days to 36 months. Please refer to our Mini State COBRA Law Directory.
Written by Craig J. Casey
Craig Casey is an Writer, Coach, Blogger, Husband, and Former Health Insurance Agent helping people on the web since 1999 with their health insurance problems.
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