Understanding COBRA Insurance Coverage in Tennessee

Tennessee’s Mini-COBRA Law

Tennessee’s state continuation of coverage law, as outlined in Tennessee Code Title 56. Insurance § 56-7-2312, requires that group policies for hospital, surgical, or major medical expense insurance, or any combination of these coverages, must offer coverage continuation options to eligible employees or members. Those whose insurance coverage has been terminated for any reason except for discontinuance of the group policy in its entirety or with respect to an insured class may be entitled to continued coverage under the group policy for the fractional policy month remaining at termination, plus three additional policy months. They must pay the employer the full group premium for this continuation of coverage, including any portion of the premium typically paid by their former employer on or before the beginning of each month’s coverage.

After the continuation period ends, the person may be entitled to a policy of health insurance that complies with the applicable requirements specified in Tennessee’s insurance law. If the group policy was terminated in its entirety or with respect to an insured class of which the employee was a member, the employee may not be entitled to continued coverage or a converted policy. The employee may have the right of conversion upon termination of the group policy. However, an employee may not be entitled to continued coverage or a converted policy if their insurance under the group policy terminated because they failed to pay any required contribution, are eligible for Medicare under Title XVIII of the federal Social Security Act, or the discontinued group coverage was replaced by similar group coverage within 31 days.