For eligible employees of a small employer plan and their dependents, coverage is triggered when coverage under the plan is lost due to termination of employment, reduction of hours, marriage dissolution, or attainment of any age specified in the plan. Eligible beneficiaries can continue coverage no longer than 12 months. Premiums for such coverage may not exceed 102% of the rate charged eligible employees.
Indiana mini COBRA Notices
An employer must notify an individual of the individual's possible right to continuing coverage by presenting notice to the individual in writing within 10 days after the individual becomes an eligible employee.
You may be eligible for the Indiana's High Risk Reinsurance Pool Plans.
Converting IN group health
Eligible employees covered under a health insurance plan for 90 days prior to termination are eligible for to convert (Sec. 27-8-15-31).
The insured must request a conversion policy from the small employer insurer that insured the health insurance plan within 30 days after the individual loses coverage under that plan (Sec. 27-8-15-31(b)). Premiums for a conversion policy shall not exceed 150% of the rate charged to active employees.
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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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