State Continuation

Colorado state continuation is made available to terminated employees of employers with less than 20 employees. These employers are exempt from federal COBRA regulations. (Business Groups of One [BGO] fall outside rules governing state continuation.) Mini-COBRA states must comply with ARRA subsidy rules.

Colorado, If you offer a group health, dental, or vision plan to your employees and have had fewer than 20 full and part time employees on at least 50% of the typical business days in the preceding calendar year, you must make continuation and conversion information available within ten days of loss of coverage (termed a "qualifying event"). The employee must have been insured under your plan, or any plan that was replaced, for a full six months for Colorado state continuation rules to apply. Employees who do not meet this requirement are eligible to convert a group health plan to an individual plan from the group health insurer after just 90 days of coverage. (Note: different states have different rules for non-COBRA eligible beneficiaries).

The ex-employee must receive notification properly, in a valid form, from his former employer in order to elect coverage within a 30-day time frame. from loss of employment. Failure to provide legal notice of these rights extends the election period to 60 days. Cost of continuation coverage is borne by the individual, with no employer contribution required. [ARRA subsidy rules could apply]

Employees considering Colorado state continuation could also consider a short term medical plan. These temporary plans are useful as interim coverage, such as during an employer-mandated waiting period, or for use between jobs, and are often substantially cheaper than group continuation coverage.

We provide continuation notification-only at free or reduced cost for our employer-clients only, with group medical, dental, or visions plans.