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 various life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.
In the recent past, COBRA required that group health plans sponsored by employers with 20 or more employees in 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.
Arizona SB1217, however, extends the reach of COBRA in Arizona. Arizona SB1217 requires employer groups with fewer than 20 employees to offer COBRA coverage to all enrolled employees and their eligible spouses and dependents, effective January 1,2019.
If you have 20 or more employees, you should already be offering COBRA coverage upon termination. If you have less than 20 employees, you will be required to do likewise before the end of the year.
To review if you are Cobra Insurance compliant contact Marian Abram
