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 New Jersey mini-COBRA?
New Jersey mini-COBRA applies to employer group health plans for employers with fewer than 20 employees.
What are the qualifying events?
New Jersey mini-COBRA qualifying events are similar to federal COBRA. A qualifying event includes:
- Termination of employment (except for cause)
- Reduction of hours to less than 25 hours per week that causes a loss in coverage
- Divorce or legal separation
- Death of the employee
- Change in dependent status
The length of continuation coverage depends on the qualifying event.
Qualifying Event | Qualified Beneficiary | Length of Continuation Coverage |
Death of employee | Spouse and/or dependent child | 36 months |
Termination of employment | Employee, spouse, and/or dependent child | 18 months |
Disability | Individual determined to be disabled within first 60 days of losing coverage | 29 months |
Divorce or legal separation | Spouse and/or dependent child | 36 months |
Loss of dependent status | Dependent child | 36 months |
Reduction of hours | Employee, spouse, and/or dependent child | 18 months |
Who is a qualified beneficiary?
A qualified beneficiary is an employee, spouse or dependent that is covered by the plan on the day before a qualifying event.
Are there notice requirements?
Carriers are required to include a notice of continuation rights with the certificate of coverage. Employers are required to provide a notice at the time of the qualifying event.