Colorado Cobra

If you need information about Colorado health insurance law, this page provides useful information about Colorado cobra coverage, and helps you to understand the legalities of cobra in Colorado. Access Colorado Health Insurance blog here.

For the latest information on changes to Colorado health insurance law, Colorado House Bills 1164 & 1355, click the applicable bill's number.

COBRA

STATE CONTINUATION OF COVERAGE

Federal Law

Employer groups with 20 or more employees (full and part time) on more than 50% of typical business days in the previous calendar year

Church groups and federal government employees are exempt from COBRA; Federal employees have Temporary Continuation Coverage (TCC) – refer to Feds EOC.

Any employee, spouse, dependent or child born to or adopted by a covered employee during COBRA coverage is eligible if covered under a group health plan the day before the qualifying event.

COBRA participant must pay 100% of group premium  + a 2% administrative fee may be added to the Dues, or up to an additional 50% may be added to the Dues for a COBRA participant during any disability extension of the COBRA eligibility period.

State Law

All employer groups

Includes church groups and employees terminated for gross misconduct or any reason other than termination of the group contract.

Any employee or dependent is eligible who has been covered continuously under the group contract or its predecessor contract for a minimum of 6 consecutive months prior to termination.

Continuee must pay 100% of group premium.

QUALIFYING EVENTS:

QUALIFYING EVENTS:

Termination of employment (except for gross misconduct) or reduction of working hours of covered employee (and enrolled dependents) so as to not qualify for group coverage:  18 months

Death of covered employee, dependents can continue for: 36 months

Divorce or legal separation from covered employee, dependents can continue: 36months

Dependent child ceases to be a dependent under the requirements of this Agreement:   36 months

Covered employee becomes entitled to Medicare; dependents can continue:           36 months

A determination of disability of a qualified COBRA beneficiary under the Social Security Act prior to termination or reduction of hours (other than for gross misconduct) or within the initial sixty (60) days of COBRA coverage: 29 months

USERRA (Military Leaves): 24 months

Termination of employment or reduction of working hours of employee to less than 30 hours due to economic conditions: 18 months

Death of employee, dependents can continue for: 18 months

Change in marital status, dependent can continue for: 18 months

Not applicable if dependent child ceases to be a dependent under the requirements of this Agreement, such as failure to maintain full-time status as student, reaching age constraints or marriage.

Not applicable to persons covered by Medicare or Medicaid.

COBRA

STATE CONTINUATION OF COVERAGE

ADMINISTRATION:

Employer or a third party administrator administers plan.  It is the employer’s responsibility to notify subscriber and dependents of COBRA coverage option.

Employer is responsible to notify Kaiser Permanente of employees or dependents who have elected COBRA. Continuee will be billed on group bill.  Employer is responsible for collecting the premium; 2% (or 50% for disability extension) may by added by employer for administration costs.  If COBRA is billed by the group, it is their responsibility to bill the additional 2% or 50% for administration costs.

Current Kaiser Permanente practice is to not directly bill COBRA participants for small groups.

Notification:  Employer must notify plan administrator of employee qualifying event within 30 days.  Plan administrator has 14 days following date of termination to notify employee of continuation rights.  If employer and plan administrator are one and the same, employer has 44 days to notify employee.

Employee has 60 days to elect or waive COBRA coverage from date of loss of coverage or date of notification by employer, whichever is later.

A qualified beneficiary must pay current Dues for COBRA coverage no later than 45-days after the beneficiary’s election to continue coverage.  After the initial 45 day period, payment due dates are determined by the employer, employee must pay within 30 days of established due date.

It is the employer’s responsibility to notify continuee of benefit or premium changes.

Kaiser Permanente will set up a separate COBRA group for employers with over 100 (eligibles/employees/COBRA members).

ADMINISTRATION:

Responsibility of employer (or a third party administrator) to administer and notify former employee and dependents of state continuation of coverage.  (It is the employer’s responsibility to notify dependents of State Continuation of coverage).

Employer is responsible to notify Kaiser Permanente of employees or dependents who have elected continuation of coverage.

Continuee will be billed on group bill.  Employer is responsible for collecting premium and remitting to Kaiser Permanente.

Kaiser Permanente does not bill continuees for small groups.  Some groups are grandfathered.

A qualified beneficiary must pay current premiums for continuation of coverage no later than 30 days from the date of termination.  After the initial 30 day period, payment due dates are determined by employer.

Employer notification: Employer has 10 days following date of termination to notify employee in writing of continuation rights.

Employee has 30 days from date of termination to elect and pay for continuation of coverage; the employee has 60 days to elect and pay for coverage if employer did not give proper notification.

It is the employer’s responsibility to notify continuee of benefit or premium changes.

To download a copy of the Colorado Cobra health insurance law, click on the flag below.

To download a sample letter offering an employee continuation of coverage under Colorado Cobra, click on the flag below.

To download points of contact for further information concerning Colorado Cobra continuation of coverage, click the flag below.

To download Federal Law which applies to group sizes of 20 or more, click the flag below.

To download state of Colorado Cobra information, click the flag below.

The Cobra Colorado  information presented on this site is provided by Kaiser Permanente.

For answers to additional questions regarding colorado health insurance law, or to run a Colorado health plans summary report, please contact Health Shop, Inc at 303-425-4466.

1-888-425-4466

303-425-4466

Small Business and Group Health Insurance in Colorado