COBRA FAQ's

Question: I have been laid off from a small company with 10 workers. I know that federal continuation of health coverage requirements (COBRA) do not apply to my employer. Is there a law in Maine that allows me to continue my job based health insurance coverage?

Answer:
Federal COBRA applies to companies with 20 or more workers.

The Maine insurance code has a limited continuation coverage requirement for workers who work for a company with fewer than 20 employees. This requirement is called mini-COBRA. It provides one year of continuation coverage to qualified employees. So if your employer offered coverage and you were laid off, you may qualify.

Continuation rights are only available if you are temporarily laid off or lost employment because of an injury or disease that would be covered under workers' compensation. Under the mini-COBRA law insurers are permitted to require up to six months of employment before the layoff and to require the employee to elect coverage within 31 days of the layoff. There are additional requirements for dependent continuation coverage.

Question: The federal stimulus package passed in February 2009 provides 65% premium assistance for COBRA. Does state mini-Cobra continuation coverage in Maine qualify for the 65% premium assistance?

Answer: Yes under certain circumstances. You may be eligible for the federal subsidy to help pay for state continuation coverage only if you were temporarily laid off or lost employment because of an injury or disease that would be covered under workers' compensation after September 1, 2008.

Question: I was laid off more than 31 days ago from a small company with 10 workers. I decided not to continue my health coverage because I could not afford it. Now that the 65% premium assistance is available, can I change my mind?

Answer: Yes, if you were laid off after September 1, 2008 and qualify for federal premium assistance. A new law effective June 3, 2009, provides you a second election period. The insurer is required to notify you of this and you have 60 days from the date the notice was mailed to apply for coverage. Coverage will begin on the date of your application and last up to nine months, the period for which federal premium assistance is available.

Question: I was laid off more than 31 days ago from a small company with 10 workers. I did elect to continue my health coverage but later dropped it because I could not afford it. Now that the 65% premium assistance is available, can I change my re-enroll?

Answer: Yes, you are eligible for the second election period described in the answer above.

Question: Whom do I contact if I have additional questions about mini-COBRA continuation coverage?

Answer: Please contact the Maine Bureau of Insurance by calling toll free at 1-800-300-5000 and ask for the Consumer Health Care Division.

The Bureau of Insurance will provide additional information about state continuation coverage requirements. Please check this web page for updated information.

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