American Rescue Plan Act of 2021’s COBRA Subsidy Ends September 31. What’s next?

Am I Eligible For COBRA If The Business Has Under 20 Employees?

An employer only has 8-9 employees, so they are not subject to COBRA continuation requirements, yet they have elected to provide these benefits to this one employee (and refer to the benefits as COBRA benefits). The group has certified to the insurance company that they are subject to COBRA. How can the group certify it is subject to COBRA if there are not at least 20 employees?

No. The COBRA Law Is Meant For Employers With 20 Or More Employees

If the business has less than 20 employees they are not subject to the federal COBRA law and are not required to offer continuation of workplace health insurance. However, many states have Mini-COBRA laws that enforce employer continuation of insurance where the business has 19 or fewer employees. Depending on the state you live in, the deadlines and length of time you have for continuing insurance may be different than federal COBRA.

Employer Responsibilities

When an employee loses their group health insurance, the COBRA law compels the employer to allow that worker to stay on their health plan. The employer is responsible for notifying the employee of their right to choose COBRA and collecting the full premium payment from the former employee. Sometimes, workplaces will use a third party administrator to facilitate the COBRA enrollments and payments. If you are unsure who the administrator is, you will want to contact the HR department of the business the health insurance is through.

 

 

Affordable Temporary Health Insurance

If you are fairly healthy and still want to remain insured, alternatives to COBRA insurance may be available based on where you live. Short-term health insurance is a popular option and available in most States. This can protect you from high medical costs of new injuries or new illnesses that unexpectedly occur while allowing you to use any licensed doctor. Coverage is available up to $1 million per person. For more information and pricing, you can call us at 1-877-262-7241 or complete a free quote online.

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Short-Term Health Insurance is popular and available in most states to cover gaps between major medical plans.

These plans also cover COVID-19 hospitalization. After deductibles and coinsurance, many plans will have $1 million in coverage.


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