Human Resource Blog

COBRA Coverage in Maryland

	Benefits
Total Compensation Summary Performance Improvement Plan Performance Appraisal and Review Employee Payroll Status/Change Form Employee Change Form

	Labor Laws
Complete State & Federal Labor Law Posters 1 Year Compliance Protection Plan State ONLY Labor Law Posters Federal Labor Law Posters

Are dependent children able to qualify for COBRA coverage in Maryland?

The law mandates if an employee is either voluntarily or involuntarily terminated, or she can qualify for extended health care coverage through COBRA. This law was passed in 1986 by Congress to give workers the opportunity to receive the same or similar group health care coverage as his or her former counterparts. The former employee had to be enrolled in the group health plan previous to his or her termination to be eligible for COBRA.

Employers with at least 20 or more employees who offer a group health plan are required by law to offer the COBRA coverage.  Full time and part time employees are used in the eligibility determination.

There are specific qualifying events for the former employee, spouse and dependent children.  The former employee can only qualify for coverage if he or she is terminated from employment. If dismissal was based on gross misconduct, the former employee cannot qualify for coverage.

Spouses qualify if the covered employee is terminated, becomes eligible for Medicare, dies or is divorced from the spouse.  Dependent children can also qualify if they reach the maximum age for dependency under the existing health care plan.

Within 30 days of termination the health plan administrator must be notified the employee is eligible.   Next the former employee is notified within 14 days after the plan administrator.  The former employee must make a choice to elect coverage.  If he or she decides to choose COBRA coverage, a payment must be made within 45 days.

COBRA coverage is valid for 18 months.  Sometimes there are secondary qualifying events that can extend coverage like disability or divorce.  If the former employee, spouse or dependent child becomes disabled, the coverage can be extended for an additional 11 months.  If the former employee and spouse are divorced, the divorcee can qualify for an additional 18 months of coverage for a total of 36 months. GW