State continuation, sometimes called mini-COBRA, extends group coverage to employees of small employers with fewer than 20 workers who are not covered by federal COBRA. Eligibility, length of coverage, and cost are set by each state.
In Texas, an eligible dependent who loses group coverage due to divorce can generally continue it for up to nine months under state continuation when federal COBRA doesn’t apply. Verify current Texas rules at enrollment.
In Louisiana, the insurer, not the employer, is responsible for notifying individuals of their State Continuation rights.
Texas State Continuation is a Texas law that allows individuals to temporarily continue fully insured group medical coverage after losing eligibility, either for up to 9 months or for up to 6 months after COBRA ends.
COBRA is a federal continuation law that applies mainly to employers with 20 or more employees, while Texas State Continuation is a Texas law that applies only to fully insured group medical plans and operates either instead of COBRA or after COBRA ends.
Texas State Continuation coverage generally lasts up to 9 months, or up to 6 months after COBRA ends, but certain dependents may qualify for up to 36 months in limited situations.
Individuals covered under a fully insured Texas group medical plan for at least three consecutive months before losing coverage may qualify for Texas State Continuation, unless coverage ended due to termination for cause.
Louisiana State Continuation allows certain individuals to continue fully insured group health coverage issued in Louisiana for up to 12 months after losing eligibility due to job loss or reduced hours.