Reg Chapter 17B, Section 27-60 requires group health plans with 2-19 employees shall offer 18 of continuation coverage to employees of any size group, while extending this period to 36 months for dependents of deceased employees and 29 months for the disabled. A premium as high as 102% of the premium paid by the employer can be charged to the ex-employee electing COBRA coverage.
New Jersey Continuation is based on a New Jersey law that allows persons who lose coverage for a variety of reasons to continue coverage under the group plan for fixed periods of time. Generally, New Jersey Continuation applies to employer groups where there are fewer than 20 employees.
Converting NJ Group Health
Conversion is available to the former spouse of a named subscriber under a group insurance contract where the former spouse is not longer entitled to coverage as an eligible dependent due to a divorce (Sec. 17:48-6).
Application for converted coverage must be made to the insurer by or on behalf of the former spouse no later than 31 days after the date group coverage terminated (Sec. 17:48-6).
New Jersey Mini COBRA and Dependents
Under the New Jersey Continuation law only the former employee has a right to elect continuation when there is a loss of coverage due to involuntary termination of employment. Dependents to not have an independent right to elect continuation when the loss of coverage is due to involuntary termination of employment but may independently be eligible as assistance eligible individuals.
Who regulates New Jersey Mini COBRA?
The New Jersey Department of Labor and Workforce Development will take appropriate action in the event of an employer's failure to comply with this law. Contact their Division of Wage and Hour Compliance, in writing at P.O. Box 389, Trenton, NJ 08625-0389, by telephone at (609) 292-1704 or via e-mail at wage.hour@dol.state.nj.us. You can also read the NJ Employers responsibilities fact sheet, and the NJ COBRA notice.P.L.2004, c.162 now permit an employer to charge up to 150 percent of the premium for months 19 through 29 if the employee is determined to have been disabled under the Social Security Act. New Jersey State continuation applies to church plans also. Email questions, or call 1-609-292-7524. Reg Chapter 17B, Section 27-60
New Jersey Mini COBRA Regulation:
17B:27-60. Written certification of creditable coverage under COBRA
20. a. A health insurer which offers a group health plan shall provide a written certification of creditable coverage at the time an individual ceases coverage or otherwise becomes covered under a COBRA continuation provision; at the time an individual ceases to be covered under a COBRA continuation provision; and upon request, on behalf of an individual not later than 24 months after the cessation of coverage under the plan or a COBRA continuation provision.
b. The written certification of creditable coverage shall include the period of creditable coverage of the individual under the group health plan and the coverage under any COBRA continuation provision and any waiting or affiliation period imposed with respect to the individual for coverage under the plan.
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.
