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COBRA Coverage in Louisiana

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Are former employees eligible for COBRA in Louisiana?

In the state of Louisiana COBRA (Consolidated Omnibus Budget Reconciliation Act) allows employees to pay for health care coverage that is very similar to the coverage the employee had when they were working.  

Companies that have at least 20 employees and provide group health insurance to their employees are required by law to offer COBRA to former employees. Full time and part time employees are counted to determine if a business has 20 or more employees.  Part time employees are counted as a fraction of a full time employee.

Employees qualify for COBRA coverage when they are voluntarily or involuntarily terminated from employment or their hours are significantly reduced.  Spouses can qualify for COBRA benefits when the covered spouse meets the requirements for coverage.

The former employee or beneficiary will pay the entire insurance premium to start the coverage. The premium will be more expensive than the employer sponsored premium they used to pay when they were employed.  The option of individual insurance is usually more expensive than the COBRA premium. The premiums cannot exceed 102% of the cost of the plan.   

When the employee qualifies for COBRA the plan administrator must be notified.  This notification must occur within 60 days of the qualifying event.  After the plan administrator is notified, the employee must be notified within 14 days.  The employee has 60 days from the receipt of notification to choose COBRA coverage.The benefits are good for 18 months. 

At times the benefits can be extended if an employee or beneficiary becomes disabled.  In this case, the coverage can be extended for an additional 11 months.  The disability must be verified by the Social Security Administration.

When a couple is divorced or legally separated COBRA benefits can be extended to the spouse.  The spouse would qualify for an additional 18 months.

COBRA coverage is cancelled when the former employee or beneficiary is hired at another organization that offers its employees health care coverage.  Coverage can also be cancelled when the plan premium is not paid. GW