COBRA (the Consolidated Omnibus Budget Reconciliation Act) passed in 1986 and extends group employer coverage to certain former employees, retirees, spouses, former spouses and dependent children. Employers with 20 or more employees are required to offer COBRA if an employee: is voluntarily or involuntarily terminated for reasons other than gross misconduct, or his/her work hours are significantly decreased. Spouses of the employee are eligible under these reasons, in addition to: Death of the covered employee; the covered employee becomes eligible for Medicare; or the eligible employee dies. Eligible parties must have employers that have over 20 employees, be a qualified beneficiary under the plan, and fall into one of the categories listed above.
By law, beneficiaries must be offered coverage identical to that offered prior to being eligible for COBRA. However, beneficiaries may have to pay the entire premium, which can amount to no more than 102 percent of the cost of the plan for those not eligible for COBRA. COBRA usually lasts 18 months, or up to 36 months for dependents. Review the rules at www.dol.gov/ebsa.
An individual who is insured by a group health plan through an employer with 19 or fewer employees may continue their plan up to 9 months. Eligibility rules are similar to COBRA. For all of the rules please visit www.legis.iowa.gov.
To obtain an initial group health quote, fill out the Group Quotation Request form and send it to R.S. Doughty Associates, Ltd. via e-mail (grpteam@rsdoughty.com or fax (515)-727-6013.)
Fill out the Form AOR-1.
For all other questions, please contact us.