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 Delaware mini-COBRA?
Delaware 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?
Delaware mini-COBRA qualifying events are similar to federal COBRA. Qualifying events include:
- Reduction of hours causing a loss in coverage
- Termination of employment (other than for gross misconduct)
- Death of the employee
- Divorce or legal separation
- Eligibility for Medicare
- Loss of dependent status
- Employer’s bankruptcy
Continuation coverage generally lasts nine months.
Who is a qualified beneficiary?
A qualified beneficiary is anyone covered under the plan for at least three months before a qualifying event.
Are there notice requirements?
Group policies must contain a notice of continuation coverage rights. Employers are responsible to notify qualified beneficiaries, the plan administrator, and the insurance carrier when the qualified beneficiary has a qualifying event. Qualified beneficiaries must then notify the plan administrator if they elect continuation coverage. The plan administrator will then notify the carrier.