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Michigan Mini COBRA Law

An employer must provide continuation coverage to dependent children of a covered employee who would lose coverage due to attainment of a specified age and who are incapable of self-support due to mental or physical disability (Sec. 24.12264).

Converting MI group health

COBRA in Michigan is mostly for children with conversion rights being the best way for former employees to continue their coverage. If an individual subscriber has been continuously covered under a group certificate for at least 3 months before termination, the subscriber, covered spouse, and dependents may elect coverage under a group conversion certificate at termination.

Termination includes loss of coverage due to voluntary or involuntary termination of employment except for termination of employment due to gross misconduct. Surviving and divorced spouses are also eligible. The subscriber is not eligible for conversion coverage if covered by a similar group plan or Medicare (Section 24.660(410a)).

Notifice of the conversion privilege shall be included in each certificate of coverage. A master certificate holder must give written notice to an individual subscriber of the conversion option with 14 days after the event that causes the termination of group coverage Section 24.660, 410a.

An individual subscriber must elect conversion coverage not later than 30 days after termination of group coverage.

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.

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.