Plans with 2-19 employees can qualify for up to 18 months if the employee is terminated without cause. Employees must have been covered under the group contract and been employed for 3 months.
If an employee is terminated without cause, they must be offered 18 months of continuation coverage. All other employees are offered 6 months of continuation coverage if they were insured under the group health plan for at least 3 months. Employees have at least 45 days from termination date to elect continuation of coverage. Continuation coverage is available through conversion plans for those that exhaust their COBRA. The Maryland Medical Insurance Plan provides an alternative option of guaranteed coverage for person that have exhausted their COBRA and are ineligible for a standard individual medical insurance policy due to pre-existing medical conditions.
All employers in Maryland who offer group health insurance are required to offer conversion coverage to their employees without providing evidence of insurability. There are no limits on premiums charged and benefits may be severely limited. The election period is 45 days. IN §15-409 COMAR 31.11.04.
Maryland Mini COBRA or Federal?
An individual need not make elect either Maryland's mini COBRA law or Federal COBRA. Eligible Maryland participants are entitled to choose both, and if there are
differences in qualifications or benefits, those differences can be resolved in favor of the
beneficiary
Who enforces by the Maryland Mini COBRA Law?
The Maryland Insurance Administration by authority of Title 31 of the Maryland Insurance Administration, Chapter 4.
Maryland Insurance Administration
Office of Public Affairs
525 St. Paul Place
Baltimore, MD 21202-2272
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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About COBRA
Employers who offer group health care plans to a minimum of 20 employees must comply with ERISA (the Employee Retirement Income Security Act of 1974). The Federal version or the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA), requires that most group health plans provide 18-36 months of continuing health insurance.
