How COBRA Works In Michigan

In Michigan, COBRA is a federal law that gives individuals the right to continue their employer-sponsored health insurance after losing coverage due to a qualifying event, such as job loss or reduced hours. This continuation acts as a safety net, offering the same benefits for a limited time as long as the full premium is paid by the individual. Eligible individuals have 60 days from the date of notice or loss of coverage to elect COBRA continuation.

For those who are not eligible for federal COBRA, Michigan law provides an alternative option for medical plan continuation under the Nonprofit Health Care Corporation Reform Act. Individuals who were enrolled in a fully insured group plan through a nonprofit health care corporation may qualify to convert their coverage to an individual self-pay plan if coverage is lost.

Michigan Non-Profit Health Care Corporation Reform Act

Michigan does not have a Mini-COBRA law for employees of small businesses with fewer than 20 employees. As a result, workers who lose their group health insurance due to termination or a reduction in hours are not guaranteed continuation of the same group coverage under state law.

However, under the Non-Profit Health Care Corporation Reform Act, eligible individuals may convert their group coverage into an individual health insurance policy. This option allows the person to continue coverage on a self-pay basis, though the new plan may have different premiums and benefits.

To get started with a conversion plan, contact the insurance company that provided your group health policy. Request information about individual conversion options, including available plans, monthly premiums, and enrollment deadlines. Insurers are required to provide this information upon request and guide you through the application process.

Affordable Alternatives to COBRA in Michigan

In Michigan, the average health insurance premium is $719/mo per individual. If COBRA is unavailable or is outside of your budget, here are affordable other options for health coverage.

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