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 Iowa mini-COBRA?
Iowa mini-COBRA applies to employer group health plans and accident plans. Dental, vision, and prescription drug benefit plans are not included.
What are the qualifying events?
Iowa mini-COBRA qualifying events are similar to federal COBRA. A qualifying event includes:
- Termination of employment
- Death of employee
- Divorce
Continuation coverage generally lasts for 9 months.
Who is a qualified beneficiary?
A qualified beneficiary is an employee covered for at least three months before termination of employment. Spouses and eligible dependents are also eligible because of death of the employee or divorce.
Are there notice requirements?
Group health certificates must contain a provision outlining all continuation coverage rights. The employer or the carrier must also notify all employees and dependents in writing of their rights within ten days of termination of employment. The notice can either be delivered in person or mailed to the last known address. Continuation coverage must be elected within ten days of either the termination date or the date the employer provides the notice of continuation rights, whichever is later.