Page 112 - Group Insurance and Retirement Benefit IC 83 E- Book

COBRA coverage periods

Qualifying event Beneficiary eligible for COBRA Maximum coverage time

(months)
Termination of job

Reduced hours
Employee Spouse Dependent child 18

Employee entitled to Medicare

Divorce or legal separation
Death of employee

Spouse Dependent child 36
Loss of dependent-child status

Dependent child 36

COBRA eligibility also extends to workers in state and local government, as well as to

workers classified as independent contractors. However, the law grants an exemption to
the District of Columbia, federal employees, certain church-related organizations and

firms employing fewer than 20 people. The IRS has said that employers must figure part-

time workers into their employee total to determine if they can claim exemption.

Even if you work at a small company that is exempt from federal law, you might not be
completely out of luck. Many states have adopted their own laws, sometimes known as

"mini-COBRA," that often grant broader rights in determining eligibility for coverage.
Check with your state insurance department to find out if you are entitled to continued

health-care coverage under a state COBRA plan.

Employers with self-funded health plans (generally large corporations) are exempt from

state regulation of their plans, but employers who buy coverage through outside insurers
(generally smaller businesses) are subject to such laws.

Keep in mind, too, that you must actually be covered under an employer health plan to be

eligible for COBRA. If your employer has more than 20 workers but doesn't offer health