Virginia Mini-COBRA: Health Insurance Continuation for Small Employers

Virginia law § 38.2-3541 requires health insurers to provide a continuation of group health insurance coverage when an employee or their dependent loses eligibility under their employer’s plan. This continuation applies to group health plans offered by employers with 2 to 19 employees and helps ensure individuals can maintain health coverage during employment transitions.

The law mandates that insurers offer continuation coverage unless the loss of eligibility is due to fraud or nonpayment of premiums. Eligible individuals must be informed of their continuation rights, including premium costs and payment deadlines.

Virginia's Mini-COBRA Law

Virginia’s continuation of coverage law ensures that employees and their dependents can remain on their group health plan for up to 12 months after losing eligibility due to qualifying events such as job loss or a reduction in hours. This law applies to small employer group plans, specifically those covering between 2 and 19 employees. It also requires that insurers provide written notice of continuation rights and payment procedures.

• Employer Size: Applies to employers with 2 to 19 employees offering group health insurance plans.
• Eligibility: Employees and their dependents who lose group coverage for reasons other than fraud or failure to pay premiums.
• Qualifying Events: Termination of employment, reduction in hours, or other loss of eligibility under the plan.
• Coverage Duration: Up to 12 months of continuation coverage under Virginia law.
• Premium Payment: The individual is responsible for paying the full premium amount, as outlined by the insurer.
• Election Period: Insurers must notify eligible individuals of their continuation rights, including cost and deadlines for electing coverage.
• How to Apply: Individuals must follow the instructions provided in the notice from the insurer or employer to elect continuation coverage and submit premium payments within the specified timeframe.

Alternative Low Cost Medical Plans in Virginia

Continuing an employer plan in Virginia with Mini-COBRA is around $514/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.