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What Is Required for COBRA for Less Than 20 Employees?

In 1986, Congress passed the Consolidated Omnibus Budget Reconciliation Act (COBRA), which provided for continuation of health coverage at the termination of employment or certain other qualifying events such as a divorce. The COBRA law applies only to firms employing 20 or more employees, and the majority of organizations around the country employ fewer 20 employs. So in recent years, many states have enacted regulations to cover employees in firms employing two to 19 employees. These regulations that apply to smaller firms are known as "mini-COBRA."

  1. Basic COBRA Requirements

    • COBRA coverage is a continuation of health coverage provided by an employer to employees, their spouses and dependent children at the termination of employment. In order to be eligible, the employee must be enrolled in the employer's group health plan on the day before the termination of employment and the plan must continue to remain in effect for the active employees of the organization.

    Length of Mini-COBRA Coverage by States

    • While the basic criteria for receiving COBRA benefits remain the same, mini-COBRA rules are made by states and differ from state to state. In Arkansas, continuation coverage for employer groups of less than 20 employees is limited to 120 days after termination of employment. On the other hand, in California, benefits are extended for a 36 month period. In Georgia, mini-COBRA coverage must last for three months after the month in which employment was terminated. Illinois, Missouri, Nebraska and Iowa provide nine months of coverage while Kansas, Kentucky, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, North Carolina, Rhode Island, West Virginia and Wisconsin extend continuation coverage through mini-COBRA for 18 months. In Louisiana, Mississippi, South Dakota and Wyoming employers with 2-19 employees must provide continuation coverage for 12 months. New Mexico, Ohio, Oklahoma, Oregon, South Carolina, Texas, Utah and Vermont provide six months of continuing coverage.

    Getting Mini-COBRA Benefits

    • The procedure for getting mini-COBRA benefits also varies from state to state. In Arkansas, employer must request continuation coverage within 10 days of termination of employment while in California and North Carolina they have a 60 day deadline. In Colorado, Florida, Iowa, employees have 30 days to accept continuing coverage. In Georgia, in order to be eligible, an employer must have enrolled in the group policy for at least six months and in Illinois, they should have been enrolled for at least three months and give acceptance notification within 10 days. In Kentucky and Louisiana, employers should be enrolled for three months prior to the date of termination and must accept coverage within 31 days. In Maine, the election period is 31 days, while in Maryland it is 45 days. New York gives only five days to elect continuation coverage after termination of employment.

    States That Do Not Offer Mini-COBRA

    • While most states have passed some form of mini-COBRA laws, not all states require employers with fewer than 20 employees to extend continuation coverage to employees upon termination of employment. As of April 2011, Alabama, Alaska and Delaware do not have any mini-COBRA laws in place.

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