Qualifying employers, employee groups, or other organizations that offer hospital, medical, or surgical benefits are responsible for letting their employees or members know about their health insurance options if they lose their coverage. The COBRA health insurance program established by the Consolidated Omnibus Budget Reconciliation Act (COBRA) is an example of a program that lets people keep their health insurance coverage provided through an employer for usually 18 to 36 months after the they lose coverage.
A qualifying event for COBRA includes, but is not limited to, a job loss, reduction in job hours, divorce, death of the covered employee. Additionally, if a former employee is eligible for COBRA, the employer must inform them about this option. They must also explain other health plans that might be available after COBRA ends, like conversion coverage which allows someone to buy a policy with the same insurance company that offered the group policy.
These notifications must include extra details to make sure employees, their spouses, or former spouses understand what health coverage they can get. It’s important for anyone losing coverage to pay attention to these notices so they know their rights and can make the best choice for their health.
(See Link(s): Labor Code Sections 2800.2)