COBRA (Archive)

The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers with 20 or more employees to allow former employees to continue coverage through the employer’s group plan after the employment ends.

Employees who terminate employment may elect to continue coverage under their employer's health plan for up to 18 months and are usually responsible for the full cost of the premium. This is known as COBRA coverage.

COBRA coverage may be available to any of the following:

l  Employees who have any of the following occur, they:

n  Leave a job.

n  Are terminated.

n  Are laid off.

n  Have their work hours reduced below 20 hours per week.

These employees may continue coverage up to 18 months.

Note:  Disabled employees who terminate employment may continue coverage for up to 29 months.

l  The following people can continue coverage for up to three years:

n  A widow(er) of a deceased employee and any dependent children of the widow(er).

n  A divorced spouse of an employee and any dependent children of the divorced spouse.

n  A spouse of a Medicare-eligible employee and any dependent children of the spouse.

n  The dependent child of an employee or a Medicare eligible employee.

n  An employee's dependent child who loses coverage due to age.

Any of the people covered by the employer’s health plan may continue coverage even if the employee or other family members do not choose to take the COBRA coverage.

Review the COBRA coverage to determine if the insurance should be used as an insurance barrier or if it should be reviewed for being cost effective. For information on how current, past or access to COBRA coverage affects program eligibility, see the following sections:

l  MinnesotaCare Insurance Barriers.

l  MA and GAMC Types of Other Insurance Coverage.

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