Understanding the difference between COBRA Continuation vs. State Continuation can be confusing. As an Employer, you are obligated to present former employees with their options promptly. We will break down the complexity to keep you at ease.
What is COBRA Continuation?
- This act gives employees and eligible family members who lose their health benefits the right to elect to continue their coverage (provided by the former employer) for a period of time. The period varies due to the “life event”.
- The cost could amount to 102% of the premium.
- Employer groups with over 20 employees must comply with this federal law.
What is State Continuation?
- A state-based requirement that is similar to COBRA however it applies to employer groups with fewer than 20 employees.
- Each state can regulate the coverage rules and there are differences state by state.
- The state guidelines you must follow are based on the state the Employer group is in.
Here are some specifics about PA State Continuation or mini-COBRA:
- Coverage from a former employer can be extended for up to 9 months.
- The period of time cannot be extended for certain “life events”.
- Former employees have 30 days from the date of the Mini-COBRA election notice to choose the coverage.
Contact Melanie Tumolo at melanie@ewmginc.com for more information or if you have any questions!
If you have any life changes or updates to your benefits that you need us to address (I.e., address change, marriage, the birth of a child, loss of coverage, etc.) please do not hesitate to contact us at 215-579-5601 or email us at info@ewmginc.com.
