State Continuation Coverage

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State Continuation Coverage


A state-based requirement that applies to group health insurance policies of employers with fewer than 20 employees. It is sometimes confused with COBRA.

COBRA applies to groups with 20 or more employees.

Employees of smaller companies are allowed to keep the same group health insurance coverage for up to nine months after loss of a job or loss of coverage because of a reduction in work hours.

In some states, state continuation coverage rules also apply to larger group insurance policies and add to COBRA protections.

Example: In some states, if you're leaving a job-based plan, you must be allowed to continue your coverage until you reach the age of Medicare eligibility.