What is COBRA? The Department of Labor explains it as follows: The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage plus 2% for administration costs.
Federal COBRA generally requires that group health plans sponsored by employers with 20 or more employees for 50% of the prior year, offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end. Group health plans include medical, dental and vision.
Mini COBRA or Arizona Continuation Coverage January 1, 2019. Cobra will apply to all companies in Arizona offering group medical benefits, with 2 - 19 employees, effective 12/31/18 upon your plan's next renewal date in 2019. Employees must have been covered on your medical plan for at least 90 days in order to be eligible. Employers will charge the employee 100% of the premium plus 5% for administration costs. Under the Arizona law, only medical coverage will be eligible to be continued.
COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice.
How can we help? If you are an employer group, we can provide assistance finding programs through your insurer, independent solutions or do it yourself programs enabling you to manage this government regulated program. Exclusive to clients of CB Benefits, is Arizona Cobra Coverage LLC, an affordable option. Contact us for more information.