How COBRA Insurance Works In Colorado

Colorado’s Mini-COBRA Law

1. Colorado Continuation/Conversion Coverage is available to employees whose employer group policy is not subject to the Federal COBRA Law.
2. The maximum duration of the coverage is 18 months or until the participant becomes eligible for another group coverage. If a new group plan excludes a covered condition, the prior employer’s plan may continue to provide coverage for the 18 months or until the new plan covers the condition.
3. This coverage applies only to fully insured plans and HMOs, not to self-funded plans, federal plans, or plans outside of Colorado’s jurisdiction.
4. The benefits match those of non-terminated employees, including dental, vision, and prescription benefits under separate contracts.
5. Employees and dependents are not eligible for COBRA if termination was due to gross misconduct, but Colorado Continuation Coverage may be available if all other requirements are met.
6. Dependents who lose their dependent child status under the plan’s rules are not eligible for Colorado Continuation Coverage, but may be eligible for conversion coverage.
7. The employee must have been continuously covered under the employer’s plan for at least six consecutive months to be eligible for Colorado Continuation Coverage. Conversion is available if the employee has been covered for more than three months but less than six.
8. The employer must send written notice to the employee of their right to continue coverage within 10 days of termination. The notice must include the monthly payment amount, payment instructions, and the consequences of non-payment.