Health Care Continuation (COBRA)
(Jump to state content for this section)
Author: Jayne Zanglein, Western Carolina University
- Employers with at least 20 employees are required to comply with the Consolidated Omnibus Budget Reconciliation Act (COBRA). See Continuation of Health Care Coverage.
- COBRA requires group health plans to extend health insurance coverage to employees and their families who lose coverage due to certain qualifying events. See Qualified Beneficiaries; Qualifying Events.
- Employees terminated for gross misconduct are generally not eligible for COBRA coverage. See Termination for Gross Misconduct.
- Employers are required to provide employees and their families with notices explaining their rights to COBRA continuation coverage. See Required COBRA Notices.
- Coverage offered under COBRA must be the same as the coverage extended to individuals who are not receiving continuation coverage under COBRA. See Benefits Offered Under COBRA.
- COBRA coverage is for a limited length of time, generally 18 months. See Period of Continuation Coverage.
- Certain conditions entitle covered individuals to extend the 18-month maximum period of continuation coverage. See Extension of Continuation Coverage.
- Covered participants pay the full cost of coverage at the group rate. Employers can charge a two percent administration fee. See Paying for COBRA Coverage.
The following states have additional requirements for this topic under applicable state law.
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia