The Consolidated Omnibus Reconciliation Act of 1986, known as COBRA, is a federal law requiring covered employers to provide their employees with continuing health insurance after job termination. COBRA requires employers to provide eligible employees with up to 18 months of continuing group health coverage. Many states enacted similar legislation providing expanded coverage to employees who are not eligible for the coverage benefits under federal law. The Kansas Continuation Law requires employers to comply with the state's insurance law if they are not covered by the federal law.
Federal Law
COBRA covers employers with 20 or more employees, state employers and local government agencies. The Employee Benefits Security Administration within the U.S. Department of Labor is responsible for ensuring compliance. COBRA requires employers to provide their eligible employees with up to 18 months of health coverage after terminating employment. Generally, employees are eligible to receive continuing benefits if they were not terminated for egregious misconduct. COBRA does not require employers to purchase health insurance solely to comply with the federal law. Instead, an employer is required to provide existing health coverage for an extended period.
Mini-COBRA
The Kansas Continuation Law, known as a "Mini-COBRA" plan, requires employers to provide their employees with continuing coverage. Employers must comply with the state law if they have at least two employees but have less than 19 employees. Employers with more than 19 employees must comply with the federal law. Similar to the federal COBRA requirements, employers must provide their employees with the ability to cover their dependents. The Kansas Continuation Law requires employers to provide their employees with elective coverage for at least 18 months from the last date of employment eligibility.
Kansas Continuation Law
The Kansas Insurance Department is the government agency responsible for regulating insurance products and licensing insurance agencies that provide insurance products to Kansas residents. The department provides residents with educational resources and provides a list of licensed agents authorized to sell them health insurance coverage under the Kansas Continuation Law.
Insurance Benefits
The Kansas Continuation Law does not require employers to provide insurance coverage to employees who are terminated after at least three months of work for an employer. Additionally, employers do not have to provide Kansas Continuation coverage to employers who qualify for Medicare insurance benefits or are eligible to receive insurance benefits through other employers.
At the time of publication, neither federal law nor Kansas law requires employers to pay any portion of their employees' coverage. An employee is required to pay her continuation coverage premium immediately after a termination or voluntary resignation. Federal law requires employers to provide their eligible employees with a notification letter allowing them to elect continuing group health coverage.
Private Coverage Options
Although the majority of unemployed residents qualify for COBRA or Kansas Continuation coverage, individual health coverage plans can benefit unemployed workers who are ineligible for benefits, such as sole proprietors. Many different carriers offer individual health insurance policies, and each carrier may offer several types of individual health coverage. For instance, insureds pay more for all-inclusive policies covering inpatient and outpatient care, health and hospital indemnity coverage, short-term disability or temporary disability coverage and physician care coverage. However, unemployed workers with preexisting conditions may receive limited coverage for their preexisting illnesses when they purchase private coverage. COBRA, on the other hand, typically includes coverage for preexisting conditions at a lower cost.
Considerations
Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your state.
Tags: Kansas Continuation, employees with, employers provide, requires employers, health coverage
