11.5.2 Conversion Privileges
Conversion privileges are available to allow the group-covered individual to change (convert) his group policy to an individual medical expense policy, but it must be with the same insurer.
There is typically a 30-31 day period in which the participant must make the conversion.
COBRA Continuation of Benefits
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is a federal law that guarantees an employee the right to continue group health coverage due to termination of employment. COBRA requires employers with 20 or more employees to permit employees or family members to continue their group health coverage at their own expense, but at group rates, if they lose coverage because of a loss of employment, reduction in hours, divorce, death of the supporting spouse, or other designated event for up to 18 months (36 months in some situations). However, even at group rates, COBRA coverage can be expensive, up to 102% of the premium that would otherwise be charged. (The additional 2% is allowed to cover the insurer's administrative expenses.)
As long as the employee has not been fired for 'cause,' COBRA mandates that the group insurer offer the insured the option to continue their group medical expense coverage for up to 18 months following the date of termination (up to 29 months if disabled and 36 months in certain other circumstances).
Florida's Mini-COBRA law pertains to employers with less than 20 employees and is covered in Lesson 19.
COBRA also mandated that pregnancy be treated in the same way as any other medical illness or condition.
