When eligible insured employees leave your company, Federal & State laws require the employer to offer the option of continuation of certain insurance benefits, and/or their dependents, at the employee's (or dependents) own expense. Careful attention should be paid to how this procedure is administered, since these laws are constantly changing.
Federal Continuation of Health Coverage (COBRA)
- 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 up to 102% of the cost to the plan.
- COBRA generally requires 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.
- COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice.
US Department of Labor- Cobra Publications
- Employee Guide to Health Benefits under Cobra (September 2022)
- Employer Guide to Health Benefits under Cobra (October 2021)
- US Department of Labor Cobra Web Page Link
Illinois Department of Insurance
- Smaller Illinois employers who are not subject to the Federal COBRA continuation guidelines are still subject to IL Continuation (mini-Cobra) laws.
- Continuation Rights Fact Sheet (May 2018)
We have access to administrative organizations that can administer your COBRA or State of IL Continuation, help you comply with all applicable rules & avoid any potential legal liabilities.