Most employers are familiar with the federal COBRA law. However, many may not be aware that most states have also passed their own version of COBRA, popularly called mini-COBRA laws. While many of these laws are similar to federal COBRA, there can be important differences.
What employers have to comply with Colorado mini-COBRA?
Colorado mini-COBRA applies to employers with one to 20 employees that are not covered by federal COBRA. The law applies to all employer group health plans.
What are the qualifying events?
Colorado mini-COBRA qualifying events are similar to federal COBRA. A qualifying event is when insurance coverage ends for any reason other than the group policy being discontinued. Coverage typically lasts for 18 months.
Who is a qualified beneficiary?
A qualified beneficiary is an employee who was covered by the employer’s plan for at least six months before a qualifying event and eligible covered dependents.
Are there notice requirements?
Employers must provide a written notice within ten days of a qualifying event. The notice can be either a:
- Written communication signed by the employee; or
- Postmarked notice mailed to the employee’s last known address
If the employer has complied with the notice requirement, qualified beneficiaries have 30 days after the date of termination to elect continuation coverage. If the employer has not complied with the notice requirement, qualified beneficiaries have 60 days from termination to elect coverage.