How COBRA Insurance Works In Colorado

COBRA insurance is available in the state of Colorado. Residents will always qualify under Federal COBRA Continuation Coverage and Colorado State Continuation Coverage. Both laws exist to provide eligible individuals and their dependents with the option to continue their employer group health insurance benefits for a limited period following certain qualifying events, such as voluntary or involuntary termination of employment or a reduction in hours worked.

For employees who were covered under a group health insurance policy issued by an employer with 20 or fewer employees, the state of Colorado offers State Continuation Coverage under Title 10, Article 16 of the Colorado Revised Statutes. This state-level continuation option mirrors many of the protections afforded by the federal COBRA law but applies to small employers not subject to the federal mandate. Coverage under the state continuation law is available for a maximum of 18 months and is contingent upon the employee having been continuously insured under the employer’s plan for at least six consecutive months prior to the qualifying event.

1. Colorado Continuation/Conversion Coverage is available to employees whose employer group policy is not subject to the Federal COBRA Law.
2. The maximum duration of the coverage is 18 months or until the participant becomes eligible for another group coverage. If a new group plan excludes a covered condition, the prior employer’s plan may continue to provide coverage for the 18 months or until the new plan covers the condition.
3. This coverage applies only to fully insured plans and HMOs, not to self-funded plans, federal plans, or plans outside of Colorado’s jurisdiction.
4. The benefits match those of non-terminated employees, including dental, vision, and prescription benefits under separate contracts.
5. Employees and dependents are not eligible for COBRA if termination was due to gross misconduct, but Colorado Continuation Coverage may be available if all other requirements are met.
6. Dependents who lose their dependent child status under the plan’s rules are not eligible for Colorado Continuation Coverage, but may be eligible for conversion coverage.
7. The employee must have been continuously covered under the employer’s plan for at least six consecutive months to be eligible for Colorado Continuation Coverage. Conversion is available if the employee has been covered for more than three months but less than six.
8. The employer must send written notice to the employee of their right to continue coverage within 10 days of termination. The notice must include the monthly payment amount, payment instructions, and the consequences of non-payment.

Alternative Low Cost Medical Plans in Colorado

Continuing an employer plan in Colorado with Mini-COBRA is around $703/mo, per individual. If COBRA is unavailable or is outside of your budget, you do have affordable other options for health coverage. See below.

The cost of health insurance is determined by your age and state of residency.