Requires an employer to offer continuation coverage to employees and dependents when the covered person's regular work schedule is reduced to less than the minimum time required to qualify for coverage. Coverage lasts for 1 year (Section 33-22-503 and 33-22-507).
Converting MT group health
Employees, their dependents or family members whose coverage under a group disability insurance policy ceases because of termination of employment or membership in the eligible class for coverage, because the employer discontinued the business or the group policy, or because of the death of the employee or member, are eligible for conversion coverage without evidence of insurability, if the employee had been insured for 3 months and is not insured under another major medical disability insurance policy (Section 33-22-508, as amended by Chapter 469 (H. 188), L. 2005, effective October 1, 2005).
Application for converted coverage must be made, along with payment of the first premium, within 31 days after the termination of group coverage (Section 33-22-508, as amended by Chapter 228 (S. 369), L. 1999, effective January 1, 2000).
Premiums.- Premiums must be at no more than 200% of the insurer's then-customary rate applicable to the coverage of the individual or group policy. If the person entitled to coverage has been insured for more than 3 years, the premiums may not be more than 150% of the insurer's then-customary rate (Section 33-22-508, as amended by Chapter 228 (S. 369), L. 1999, effective January 1, 2000).
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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