COBRA Laws in Massachusetts

• The Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) is a nationwide program that allows employees who retire, quit their jobs or lose coverage due to reduced hours to continue on the same insurance plan they had when they were working. Federal COBRA laws apply only to employers with more than 20 full-time employees. Specific Massachusetts COBRA laws (Massachusetts Mini-COBRA) apply to employers with fewer than 20 full-time employees, but are otherwise nearly identical to the federal laws.
  
  

Qualified Beneficiaries and Qualifying Events

• Massachusetts law requires Mini-COBRA benefits be given to everyone who qualifies after a “qualifying event” takes place. A qualifying event is any event that would cause a person to lose insurance, such as death, changing jobs or being laid off. If your spouse or child is covered under your insurance, they could be eligible for COBRA benefits as well. For example, an employee’s spouse or dependent child would receive benefits for 36 months after the employee's death, or for 18 months after termination of employment or a reduction in hours. They would also receive benefits for 36 months after divorce or after the employee becomes entitled to Medicare. Dependent children are entitled to 36 months of coverage after they are no longer considered dependent under the terms of their parents' small-group health insurance plan.
  
  

Notice to Qualified Beneficiaries

• Massachusetts Mini-COBRA law requires small-group insurance companies to notify people of their right to continue insurance coverage. They must provide notification to an employee and their spouse of their rights at the time their coverage begins. They must also provide a similar notice within 14 days of becoming aware of a qualifying event. The small-group carrier may also require the employer to issue notices to employers who qualify for COBRA benefits.
  
  

Premiums

• The premium, or monthly cost, for Mini-COBRA coverage in Massachusetts cannot exceed 102% of the cost you paid while you were employed. The first premium payment must be made within 45 days after collecting COBRA coverage, and the insurance company can't demand any payment before that date. After that point, payments are made monthly and there is a 30-day grace period for late payments. These payments may be made through your employer.
  
  

Election

• Qualified individuals have 60 days to decide whether or not to continue coverage under COBRA or Mini-COBRA. This period is measured from the date the employee lost her coverage. COBRA coverage is retroactive, which means any health expenses incurred during that 60-day window will be covered under the COBRA insurance plan.