Like COBRA, individuals electing state continuation coverage may be required to pay the entire premium for their insurance, which can include an additional administrative fee. The exact cost and whether any additional fees apply depend on the specific state’s legislation governing continuation coverage.
State Continuation
Sometimes referred to as “mini COBRA” or “state COBRA,” State Continuation laws provide similar rights to continue health coverage as COBRA, but are state-specific and often apply to employers not subject to federal COBRA, typically smaller businesses. State Continuation normally applies only to fully-insured employers, so level-funded plans might not have a continuation option. In many states, employers subject to state continuation laws have notice requirements similar to COBRA and may want to outsource the compliance reponsibilities to a TPA.
How long can an individual remain on state continuation coverage?
The duration of state continuation coverage varies by state. While COBRA typically offers 18 to 36 months of coverage, state continuation periods might be shorter. Some states offer coverage for a period similar to COBRA, while others may provide it for a shorter time frame.
Who is eligible for state continuation coverage?
Eligibility for state continuation coverage generally includes employees who lose their health insurance due to certain qualifying events, along with their dependents who were covered under the plan. Specific eligibility criteria, however, can vary depending on state regulations.
What are the qualifying events for state continuation coverage?
Common qualifying events for state continuation coverage include loss of employment (either voluntary or involuntary), reduction in hours that leads to loss of insurance eligibility, and other life events such as divorce or death of the covered employee, similar to COBRA.
How does state continuation coverage differ from COBRA?
While similar in purpose to COBRA, state continuation coverage laws are state-specific and typically apply to employers not covered by COBRA, usually smaller businesses with fewer than 20 employees. The length of coverage, eligibility criteria, and other specifics can vary based on state law, as opposed to COBRA’s federal standards.
What is state continuation coverage?
State continuation coverage is a health insurance benefit that allows employees and their dependents to continue their group health insurance coverage for a limited time after experiencing a qualifying event that would normally result in the loss of coverage. Similar to COBRA, it’s mandated at the state level and its…
How long can a former spouse continue coverage under Texas State Continuation after a divorce?
In Texas, a former spouse who has been covered on the group health plan for a full year before divorce or severance of the family relationship might be able to continue his or her coverage for up to 36 months, but a request must be made within 15 days of…