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COBRA Coverage in Kansas

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Can a former employee qualify for COBRA coverage in Kansas?

Employees that lost health care coverage in Kansas may be eligible for extended health care benefits through COBRA. COBRA is the Consolidated Omnibus Budget Reconciliation Act which was passed by Congress in 1986.  The act was designed to give former employees the opportunity to select health care coverage for a temporary period of time due to a loss of job.

Employers in Kansas that have 20 or more employees and offer group health insurance are required to offer COBRA coverage. Full time and part time employees are counted to determine employer eligibility. Part time employees count as a fraction of a full time employee.

The cost of the plan cannot exceed 102% of the total cost.  The former employee is required to pay the total premium which will be more expensive than the premium he or she paid while working.    

COBRA coverage is valid for 18 months unless a second qualifying event like divorce or disability occurs.  When a former employee is divorced during the time he or she is covered by COBRA, the spouse would be eligible for coverage for an additional 18 months.  If the former employee is disabled during the coverage period and the Social Security Administration verifies the disability, he or she could be eligible for an additional 11 months of coverage.

Coverage for COBRA begins when an employee is voluntarily or involuntarily terminated from employment.  Also when an employees work hours are significantly reduced this can entitle him or her to COBRA coverage.  Spouses and dependent children can qualify for coverage the same way the former employee qualified.  Dependent children can also qualify if they no longer meet the dependent child eligibility standard.

The plan administrator has to be notified within 30 days of the qualifying event so the employee can elect coverage.  The employee must be notified within 14 days after the plan administrator.  The employee has to choose coverage within 60 days of receiving notification.  If the employee decides to choose the COBRA coverage, a premium payment must be made no more than 45 days later.

Premiums must be paid on time to maintain coverage.  When the former employee or spouse becomes employed and receives health care benefits from the new employer, the COBRA coverage is terminated.GW