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 Texas mini-COBRA?
Texas mini-COBRA applies to employer group health plans that are delivered or issued in Texas.
What are the qualifying events?
A Texas mini-COBRA qualifying events is nearly anything that causes employees or their dependents to lose coverage. The only exception is if coverage was lost because of involuntary termination for cause.
Continuation coverage generally lasts for nine months. Qualified beneficiaries eligible for federal COBRA may elect an additional six months of coverage after federal COBRA coverage ends.
Who is a qualified beneficiary?
A qualified beneficiary is an employee covered by the plan for at least three months before a qualifying event.
Are there notice requirements?
Employers must provide a written notice to each qualified beneficiary affected by the termination. Qualified beneficiaries have 60 days from the later of the date group coverage would terminate or the date they received notice to elect coverage. Elections must be made in writing.