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COBRA Coverage in Oklahoma

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What is COBRA coverage and can I qualify for it in Oklahoma?

COBRA coverage is designed to help employees maintain health care coverage that was lost.  The law covers private sector businesses, employee organizations and state or local governments.  The federal government has their own plan similar to COBRA that covers employees’ temporary health care needs.

 

COBRA coverage is good for 18 months unless there is a second qualifying event.  If there is a divorce during the COBRA coverage period, the spouse can qualify for coverage for an additional 18 months. COBRA coverage can be extended for an additional 11 months if the former employee or spouse becomes disabled.  Social Security must be able to verify the disability.  The maximum amount of time COBRA benefits can be extended is for a total of 36 months.

 

The premiums the former employee, spouse or dependent children must pay are more expensive than the cost of the company’s group coverage but less expensive than individual coverage offered from many insurance companies.  The covered employee is paying the total premium which makes it more expensive.

 

When the employee meets the qualifications for COBRA coverage the plan administrator must be notified within 30 days of the event.  Then the employee should receive a notice of qualification in 14 days after the plan administrator was notified.  Within 60 days, the employee must select COBRA coverage.  If an employee selects coverage, he or she must make the first premium payment within 45 days.  Employees have the right to waive coverage but can change their mind as long as the 60 day time period has not elapsed.

 

Employers have to offer their former employees COBRA benefits.  The employer who had more than 20 employees covered by a group health plan during the previous year must offer COBRA.  The minimum number of employees is determined from a combination of full and part time employees. 

 

Former employees must pay the COBRA premium on time; otherwise the coverage will be cancelled. GW