Cobra Laws in the State of Florida

Health insurance is very important to Florida employees and their families. The late Sen. Ted Kennedy worked tirelessly for a law that would ensure that all employees who became unemployed would be able to continue their health insurance benefits. In 1986, his dream came to fruition when the Consolidated Omnibus Budget Reconciliation Act (COBRA) law was passed. However, federal COBRA laws do not apply to businesses that employ between two and 19 people. Because Florida cares about the health and well-being of its residents, it joined a number of other states in creating and enforcing a mini-COBRA law.

Description

• Private sector, state and local government employers who provide group health insurance for 20 or more employees are covered under the federal COBRA law.

  Florida employers who provide group health insurance for two to 19 employees are covered under Florida’s Health Insurance Coverage Continuation Act, also called a mini-COBRA.

Entitlement

• To be entitled to COBRA, your group health insurance must first be covered by COBRA, a qualifying event must have occurred and you must be what COBRA terms a qualified beneficiary. Qualified beneficiaries are covered employees, spouses and former spouses, and dependent or adopted children. In some cases, retirees, their spouses and dependent children, as well as agents, independent contractors, and directors are also considered qualified beneficiaries.

Qualifying Events

• For employees, their spouses and dependent children to qualify for the federal or Florida’s mini-COBRA, covered employees can have had their hours reduced, or must have been terminated for any reason other than gross misconduct. Spouses and dependent children also qualify for COBRA if the covered employee becomes entitled to Medicare, dies, or if the spouse obtains a legal separation or divorce.

Duration and Cost

• According to Florida Statute 627.6692, Florida Health Insurance Coverage Continuation Act, insurance companies must provide 18 months of continuous health insurance to employees, their dependents and qualified beneficiaries at their own expense. Employees or beneficiaries who want to continue their health insurance policy must do so in writing and pay the initial premium within 30 days after receiving notice from the insurance company. Florida further protects employees or beneficiaries by stipulating that monthly premiums cannot exceed 115 percent. Anything over 100 percent is an administration fee.

  Under the federal COBRA laws, duration of coverage varies from 18 months to 36 months depending on the qualifying event and qualified beneficiary. In general, if an employee is terminated or has a reduction of work hours they are entitled to a maximum of 18 months of COBRA coverage. Federal law also stipulates that monthly premiums cannot exceed 102 percent, with the 2 percent being an administrative fee.