Plans with 2-19 employees can qualify for 12 months. Insurance Code 83-9-51 of 1972.
Mississippi Code of 1972, Section 83-9-51
Group policy defined; election to continue coverage after employment termination; continuation of coverage by dependent spouse or child; exclusions; payment; termination of coverage; notice.
(1) "Group policy" means a group accident and health insurance policy or group certificate delivered or issued for delivery in this state by an insurer; a nonprofit hospital, medical and surgical service corporation; a health maintenance organization; a fully insured multiple employer welfare arrangement; or any combination thereof.
(2) A group policy delivered or issued for delivery in this state which insures employees or members, and their eligible dependents, if they have elected to include them, for hospital, surgical or major medical insurance on an expense incurred or service basis, other than hospital daily indemnity plans, specified disease only policies, or other limited, supplemental benefit insurance policies, shall provide that employees or members whose insurance for these types of coverage under the group policy would otherwise terminate because of termination of active employment or membership, or termination of membership in the eligible class or classes under the policy, shall be entitled to continue their hospital, surgical and medical insurance under that group policy, for themselves and their eligible dependents with respect to whom they were insured on the date of termination, subject to all of the group policy's terms and conditions applicable to those forms of insurance and to the conditions specified in this section. The terms and conditions set forth in this section are intended as minimum requirements and shall not be construed to impose additional or different requirements upon those group hospital, surgical or major medical plans already in force, or hereafter placed into effect, that provide continuation benefits equal to or better than those required in this section.
(3) Continuation shall only be available to an employee or member or an eligible dependent who has been continuously insured under the group policy, or for similar benefits under any other group policy that it replaced, during the period of three (3) consecutive months immediately before the date of termination. The continued policy must cover all dependents covered under the group policy. A dependent spouse of an employee or member may elect continuation of dependent spouse and dependent child coverage for a period of coverage not to exceed twelve (12) months after: (a) the date of the death of the employee or member; (b) the date of the spouse's divorce from the employee or member; or (c) the date that the employee or member becomes entitled to Medicare benefits as provided under Title XVIII of the Social Security Amendments of 1965, as then constituted or later amended.
A dependent child of an employee or member may elect continuation of his or her coverage for a period not to exceed twelve (12) months after the child ceases to be an eligible dependent of the employee or member.
(4) Continuation shall not be available for any person who is or could be covered by any other arrangement of hospital, surgical or medical coverage for individuals in a group, whether insured or uninsured, within thirty-one (31) days immediately following the date of termination, or whose insurance terminated because of fraud or because he failed to pay any required contribution for the insurance, or who is eligible for continuation under the provisions of the federal Consolidated Omnibus Budget Reconciliation Act of 1987 (COBRA) or who becomes entitled to Medicare benefits.
(5) Continuation shall not include dental, vision care or any other benefits provided under the group policy in addition to its hospital, surgical or major medical benefits.
(6) An employee or member or an eligible dependent electing continuation shall pay to the insurer, in advance, the amount of contribution required, which shall not be more than the full group rate for the instance applicable to the employee or member or an eligible dependent under the group policy on the due date of each payment. The employee or member or an eligible dependent shall not be required to pay the amount of the contribution less often than monthly. In order to be eligible for continuation of coverage, the employee or member or an eligible dependent shall make a written election of continuation on a form furnished by the insurer and pay the first contribution, in advance, to the insurer on or before the date on which the employee's or member's or eligible dependent's insurance would otherwise terminate except as provided herein.
(7) Continuation of insurance under the group policy for any person shall terminate on the earliest of the following dates:
(a) The date twelve (12) months after the date the employee's or member's insurance under the policy would otherwise have terminated because of termination of employment or membership.
(b) The date ending the period for which the employee or member or dependent last makes his required contribution, if he discontinues his contributions.
(c) The date the employee or member or dependent becomes or is eligible to become covered for similar benefits under any arrangement of coverage for individuals in a group, whether insured or uninsured.
(d) The date on which the group policy is terminated or, in the case of a multiple employer plan, the date his employer terminates participation under the group master policy.
(e) The date on which an enrolled member of a health maintenance organization legally resides outside the service area of the organization.
(f) The date the surviving spouse or former spouse of the employee or member remarries and becomes covered under a group health plan that does not exclude coverage for preexisting conditions.
(g) The date the employee or member or dependent becomes entitled to benefits under Medicare.
(8) A notification of the continuation privilege shall be included in each certificate of coverage.
(9) In the event of the employee's or member's death, the insurer shall provide notice of the continuation privilege within fourteen (14) days of the death to the person who is eligible to elect continuation. Such person has thirty (30) days after the notice to elect continuation.
(10) In the event that a dependent child of the employee or member ceases to be an eligible dependent, the insurer shall provide notice of the continuation privilege to the child within fourteen (14) days after the employee or member notifies the insurer of the child's ineligibility. The child has thirty (30) days after the notice to elect continuation of coverage.
(11) In the event of the employee's or member's divorce from his or her dependent spouse, the insurer shall provide notice of the continuation privilege to the spouse within fourteen (14) days after the employee or member notifies the insurer of the divorce. The spouse has thirty (30) days after the notice to elect continuation of coverage.
SOURCES: Laws, 1993, ch. 492, Sec. 3, eff from and after July 1, 1993. Laws, 1995, ch. 541, Sec. 1, eff from and after July 1, 1995
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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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.
