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 Illinois mini-COBRA?
Illinois mini-COBRA applies to employer group health plans.
What are the qualifying events?
Illinois mini-COBRA qualifying events are similar to federal COBRA. A qualifying event includes:
- Termination of employment, unless:
- Termination was for a work-related felony and the employee admits to, or is convicted of, the felony
- Termination was for a work-related theft that the employer was not responsible for and the employee admits to, or is convicted of, the theft
- Reduction of hours causing a loss in coverage
- Death of the employee
- Dissolution of marriage
- Loss of dependent status
- Employee’s retirement (for dependents only)
Coverage generally lasts for 12 months. Coverage will last for two years if coverage was lost because of:
- Death of the employee
- Divorce
- Loss of child’s dependent status
Coverage will last until Medicare eligibility for spouses age 55 and over, and their dependent children, if coverage with lost due to:
- Employee’s death
- Divorce
- Employee’s retirement
Who is a qualified beneficiary?
A qualified beneficiary is an employee and their covered dependents covered for at least three months before experiencing a qualifying event. A person is not a qualified beneficiary if they are covered by Medicare or another plan that covers hospital, surgical or medical coverage.
Are there notice requirements?
Group health certificates must contain a provision outlining all continuation coverage rights. The employer must also provide a written notice within ten days after termination or reduction of hours. Employees have 60 days from the day they receive notice to elect coverage.