COBRA Law

Under COBRA law, most employees in the private sector who have either been laid off or quit their jobs can continue to participate in the employer's group health insurance plan.

You have rights under the law.

Under the provisions of COBRA, employees who lose their jobs for the following reasons can still be covered under their former employer's group health plan, as long as they pay the premiums themselves:

• Inefficiency
• Negligence
• Poor performance

The exception to this rule is a situation where the person has been fired for gross misconduct. In a case of gross misconduct, the burden of proof is on the employer to prove that the misconduct existed, such as in the case of the employee being caught stealing from the employer or starting an altercation on the job.

Under COBRA law, employers are required to advise employees and their eligible dependents of their rights to continue their health insurance coverage. The employee and his or her dependents are to be notified of their rights separately.

Once the notice has been given by the employer or the administrator of the health insurance plan, the employee or the dependent has 60 days to respond if they wish to continue to participate in the insurance plan. If the insurance plan has any conversion privileges available then the person is entitled to exercise those within six months of the date that their continuation coverage under COBRA would end.

If an employer fails to follow the rules set out under COBRA law and does not offer a continuation of health insurance benefits, then the employer may be required to pay damages of $100-$200 per day that the employee is not covered, as well as other monetary damages.

Employees should make a point of finding out about their rights under COBRA legislation. Even if you accept a job and you are only working there for a short time, you have the right to continued health insurance protection if:

• You were participating in the group health insurance plan at the time you were fired, laid off, or quit your job.
• The employer had at least 20 employees, including part-time workers, in the previous year.

If you are working for an employer and your working hours are cut back so that you are no longer eligible for group health benefits, or your employer refuses to negotiate the issue of continuing health insurance benefits as part of the terms of a severance package, then you should contact the Human Resources Department to inform the employer that you are electing to continue your health insurance coverage under COBRA law.

• If the employer refuses to allow you to continue participating in the group health insurance plan after your employment has been terminated (no matter what the reason given), your best move is to get advice from a lawyer with experience in employment matters.
• If your employer is asking you to waive your right to continued health insurance coverage as part of a severance package or in a release after you have been terminated, don't sign the document. You have the right to continued coverage under COBRA law as long as you qualify.
• Another situation where you need to get expert legal advice is when the employer is alleging that you committed an act of gross misconduct and is using that as the reason for discharge (and denying your right to continued health insurance coverage under COBRA as a result). Remember that the employer must prove that the gross misconduct existed.

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