Know your COBRA rights

State-specific COBRA laws

When you leave a job, the federal COBRA law guarantees you the right to continue to buy your employer's group health insurance for up to 18 months. COBRA applies to companies that employ 20 more people (including part-timers), and that have group health plans.

COBRA participants pay the full premium of the company's group health plan out of their own pockets, plus an administrative fee of up to 2%.

Most states also have passed laws that expand that right to those working in smaller companies, usually with two to 19 employees.

The chart below shows which states have "mini-COBRA" laws. (Remember that self-insured health plans are not subject to state insurance laws; they are governed only by the U.S. Department of Labor.) It's important to know your COBRA rights.

Eligibility for "mini-COBRA" by state

State	Length of time eligible for COBRA
Arkansas	4 months
California	36 months
Colorado	18 months
Connecticut	36 months
District of Columbia	3 months
Florida	29 months
Georgia	3 months
Hawaii	3 months
Illinois*	24 months
Iowa*	9 months
Kansas	18 months
Kentucky	18 months
Louisiana*	12 months
Maine	12 months
Maryland	18 months
Massachusetts	36 months*
Minnesota	36 months
Mississippi*	12 months
Missouri*	9 months
Nebraska	12 months
Nevada	36 months
New Hampshire	36 months
New Jersey	36 months
New Mexico	6 months
New York	36 months*
North Carolina*	18 months
North Dakota	36 months
Ohio*	6 months
Oklahoma	6 months
Oregon*	6 months
Rhode Island	18 months
South Carolina	6 months
South Dakota	36 months
Tennessee	15 months
Texas	36 months
Utah	6 months
Vermont*	12 months
West Virginia	18 months
Wisconsin	18 months
Wyoming*	12 months

* In these states, group carriers have the discretion not to continue coverage for certain benefits, such as prescription drug, dental and vision coverage.

Source: The Kaiser Family Foundation at statehealthfacts.org and Georgetown University's "Consumer Guides for Getting and Keeping Health Insurance."

Other related state laws

In Arizona and Virginia, insurers have the option of offering either continuation or conversion.

In Washington, insurers are required to offer employees the option of having a continuation coverage provision; however, continuation coverage is not mandated in group policies.

In Idaho, there is no continuation coverage except extension of benefits up to 12 months for those who are pregnant or disabled.

Six states have continuation laws that extend, for certain individuals (generally 55 and older), coverage to the time when the individual is eligible for Medicare. Those states: Illinois, Louisiana, Maryland, Missouri, New Hampshire and Oregon.

States without continuation coverage for small firms: Alabama, Alaska, Delaware, Idaho, Indiana, Michigan, Montana, Pennsylvania and Washington.

In New Jersey, individuals considered disabled, under some circumstances, may continue coverage until they are no longer considered disabled.

The New Mexico Health Insurance Alliance permits some individuals to continue to maintain Alliance coverage indefinitely. In order to be eligible, an individual must have maintained Alliance group coverage for six months and no longer be eligible for this coverage for almost all reasons (i.e., loss of employment, loss of policy, death and divorce).

Video: What to do when your unemployment coverage ends

In North Dakota, except in the case of divorce, continuation coverage lasts 39 weeks. In the case of divorce, continuation coverage can last up to 36 months.

In Oklahoma, the information applies to non-HMO plans. Longer periods of extension (three to six months) are available for those undergoing treatment or are pregnant at termination of coverage. HMOs are required to extend coverage through pregnancy or ongoing inpatient treatment.

Source: Kaiser Family Foundation

Updated Nov. 3, 2009

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