Is COBRA the same as state continuation?

State Continuation is like COBRA but applies to businesses that employ fewer than 20 people. The cost of continuing healthcare coverage is usually paid for by the employee.

Does Michigan offer state continuation?

Although some states have “mini-COBRA” laws, or state continuation plans, that provide a similar continuation of healthcare coverage for employee who work for companies that have less than 20 full-time employees, Michigan does not.

What is the difference between COBRA and continuation of coverage?

State continuation coverage refers to state laws that enable employees to extend their employer-sponsored group health insurance even if they are not eligible for an extension through COBRA. While COBRA law applies throughout the U.S., it is only applicable to employers with 20 or more employees.

Does Michigan have COBRA?

The federal COBRA law requires Michigan companies who employee 20 or more workers to offer a continuation of their group health plan benefits if that insurance would end due to voluntarily quitting your job, getting fired or laid off, retire before eligible for Medicare and if there are changes in the immediate family.

What is the difference between state and federal COBRA?

Federal COBRA generally applies to companies with at least 20 full-time employees or full-time equivalents (FTEs) for 50% of the previous calendar year. State COBRA applies to companies with less than 20 full-time employees and FTEs for 50% of the previous calendar year.

What is COBRA continuation coverage?

COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.

How long does COBRA coverage last in Michigan?

The 18 months or continuation coverage will be extended to 36 months from the date of the original qualifying event. Upon the occurrence of a second event, it is your or your spouse’s or dependent’s responsibility to notify the Benefits Office within 30 days of the event and within the original 18-month COBRA period.

Is COBRA a continuation of your current insurance?

Continuation coverage allows someone who recently lost their employer-based health coverage to continue their current insurance policy as long as they pay the full monthly premiums. Continuation coverage falls into four categories: COBRA, Cal-COBRA, Conversion, and HIPAA.

What does continuation of coverage mean?

Continuation coverage allows someone who recently lost their employer-based health coverage to continue their current insurance policy as long as they pay the full monthly premiums.

Is COBRA the same as my current insurance?

COBRA Is The Same Insurance You Had When you elect to stay on your employer’s health insurance, you keep your same doctors, copays and prescription coverage. If you had dental and vision coverage previously, then your COBRA will have dental and vision .

What is COBRA continuation health coverage?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss.

Why is COBRA coverage so expensive?

The cost of COBRA coverage is usually high because the newly unemployed individual pays the entire cost of the insurance (employers usually pay a significant portion of healthcare premiums for employees).