Arizona Mini Cobra New Law starting 1-1-19.
Good morning People of Arizona! 2019 brings gifts to you from your friends in the Arizona State Legislature. 1-1-19, Yes you heard it here 1-1-19 we NOW have our own Arizona Mini Cobra Law in place. Lots of people are unaware of this so feel free to send this to them.
In the name of efficiency, here is who it effects:
· People working in companies with less than 20 Full Time Equivalent employees. (gotta use the right language).
· You have a group health plan in your place of work. It can be a group of two, but if it is a group health plan, this applies to you.
So if you or anyone in your family does not fit into these categories, than the new AZ Mini Cobra Law does not affect you. Again if you know of a family member or friend in this category send this to them.
So read not further unless you want to be educated more.
If you work for a company with 20 or more employees nothing new for you. Federal cobra laws have not changed.
Company's with 51 full time equivalent employees are still required to offer coverage. So if you are a business owner and do not offer benefits, you in big trouble. Call me for solutions.
Most of us have heard of COBRA. This is the federal law that allows you to continue your current medical coverage and other benefits if you leave your employer for whatever reason as long as your employer has over 20 full time equivalent employees. (new phrase meaning we add part time people’s hours together and divide by 30, yes 30 hours to determine how many full-time people you employ. Any questions on this give us a call (480-830-2595) and we can go over this.
BUT now coming to all employers in Arizona we have a New State Mini Cobra Law. This applies to employers with ONE or more employees. This covers a lot of businesses in our state, 89500 in 2017.
So you have 1 W-2 employee and Voila, you now have to offer them continuance in your group medical plan if they so choose. If you have offer it to them when they leave you or you want them to leave, for whatever reason.
New Law started at 1-1-19 OR your plan renewal date. So if your plan renewed 1-1-19, congratulations, your staff are not eligible. As the year progresses and you renewal. Merry Christmas, your staff now are eligible for the new Mini Cobra.
Az Mini Cobra not as generous on the eligibility aspect as you must work for your employer for 90 days or more. Where the Federal law is just be on the benefits.
Under the Federal law you can extend your coverage 18 months and perhaps longer depending on certain qualifying events.
Under Az Mini Cobra you get the same great 18 months unless there is a disability which can extend it up to 11 more months or coverage for dependents for an additional 18 months or up to 36 months total for divorce, military activation or death.
Part 2 coming next week, Stay tuned for more exciting Cobra News.