COBRA in 300 Words or Less for Florida Residents

COBRA, an acronym for the Consolidated Omnibus Budget Reconciliation Act of 1986, enables workers, and their covered family members, to continue their group health insurance coverage after terminaton of employment in good standing. Prior to the enactment of COBRA, employees with significant "pre-existing conditions", were faced with loss of benefits upon leaving their employer, and potential non-coverage for those pre-existing conditions when attempting to later enroll in a new insurance plan, employer-sponsored or otherwise.

As with any government mandate COBRA contains a variety of rules and regulations, so consult your health insurance advisor to get answers to issues specific to you and your family. COBRA comes in two (2) flavors, Federal and Florida "Mini-COBRA". Church plans, governmental plans, and "small employer plans" are not subject to federal COBRA continuation coverage requirements. Small employer plan means an employee group of fewer than twenty (20) during the preceding calendar year on a typical business day. Such small employer plans fall under state of Florida Mini-COBRA continuation rules and regulations.

Both Federal COBRA and Florida continuation rules provide continued health insurance coverage under the former employer's health insurance plan. With COBRA coverage the former employee pays each month's full premium plus a surcharge. The former employee has a sixty (60) day window [ 63 days/FL Mini-COBRA] during which the COBRA option must be exercised. The clock begins to run from the later of the former employee's coverage termination date, or the date when notice of the right to continued coverage is provided by the plan administrator. It is the former employee's responsibility to contact the insurer to start the COBRA enrollment process.

Individuals who are eligible for COBRA coverage because of their own or a family member's involuntary termination of employment that occurred from September 1, 2008 through February 28, 2010 and who elect COBRA, may be eligible to pay a reduced premium. Eligible individulas pay only 35% of the full COBRA premiums under their plans for up to fifteen (15) months. Visit the web-sites at the end of this article for more information about eligibility and income tax provisions.

Typically, COBRA benefits extend for eighteen (18) months, or until the covered person enrolls in a new health insurance plan, if earlier. There are exceptions allowing for longer periods of coverage. However, if the sponsoring employer discontinues its group health benefit plan altogether, coverage under COBRA will end on the discontinuation date.

For more information visit US Dep't of Labor for Federal COBRA and Florida CFO for Mini-COBRA at:

www.dol.gov/COBRA

www.dol.gov/ebsa/faqs/faq_consumer_cobra.html