COBRA

Consolidated Omnibus Budget Reconciliation Act (COBRA) Highlights

• Employers with 20+ employees are subject to COBRA 
  
  
• The law requires certain group health plans to provide a temporary continuation
  of group health coverage that otherwise might be terminated.
  
  
• Total length of COBRA coverage is 18-36 months, depending on the triggering event. Events include:
  • Death of the current employee
  • An employee loses eligibility due to voluntary or involuntary termination or a reduction in hours as a result of resignation, discharge (except for “gross misconduct”), layoff, strike or lockout, medical leave, or slowdown in business operations
  • Employee is entitled to Medicare and this results in a loss of plan coverage for the employee’s dependents
    
  • Divorce or legal separation that terminates the ex-spouse’s eligibility for benefits
  • A dependent child is no longer eligible for
    active coverage under the group plan due to age (generally 26)
  • Upon experiencing a qualifying event, consumers have 60 days after receiving
    the election notice to decide whether to enroll in COBRA coverage
    
    
• Consumers who choose to enroll in COBRA coverage have 45 days after making
  the election to pay the first month’s premium.
  
  
• COBRA coverage can retroactively begin on the date consumers’ job-based
  insurance ended, as long as the election is made within the 60-day election
  period for COBRA coverage.
  
  
• Mini Cobra begins January 1st, 2019

For more information, check out the whole CMS Overview:

https://www.cms.gov/CCIIO/Programs-and-Initiatives/Health-Insurance-Marketplaces/Downloads/AB-COBRA-QSHERA-Slides-Feb012018.pdf?utm_campaign=hcgov_ab&utm_content=english&utm_medium=email&utm_source=govdelivery

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