Illinois Continuation of Coverage/COBRA Continuation of Coverage

Please note that as a group insurance purchaser, you are required to offer either Illinois Continuation of Coverage or COBRA Continuation of Coverage to terminated employees.

GROUPS OF 20 EMPLOYEES OR LESS

If you have less than 20 employees, you must offer the right to continue coverage under Illinois Continuation of Coverage. To offer this continuation, you must notify the terminated employee of his/her rights within 15 days of his/her last day of employment with your company. The most effective means of notification is to send a Continuation of Coverage Election/Waiver Form via Certified Return Receipt Requested mail. Once you receive the form with the terminated employees election of waiver of coverage, please forward the completed form to your health insurance carrier. If a terminated employee does not respond to the election waiver notification within 60 days of termination, he/she is estopped from electing coverage and your responsibility to that employee ends.

Illinois Continuation of Coverage has a duration of 9 months. You, as the former employer, are required to collect the premium from the terminated employee. All health insurance carriers look solely to you as the employer for payment even though the terminated employee is required to pay 100% of the premium. If a terminated employee fails to pay his/her premium for longer than 31 days, he/she may be terminated from coverage.

GROUPS OF MORE THAN 20 EMPLOYEES

If you have more than 20 employees, you must offer the rights to continue coverage under COBRA. To offer this continuation, you must notify the terminated employee of his/her rights within 15 days of his/her last day of employment with your company. The most effective means of notification is to send a Continuation of Coverage Election/Waiver Form via Certified Mail Return Receipt Requested mail. Once you receive the form with the terminated employees election of waiver of coverage, please forward the completed form to your health insurance carrier. If a terminated employee does not respond to the election/waiver notification with 60 days of termination, he/she is estopped from electing coverage and your responsibility to that employee ends.

COBRA has a duration of 18 months with certain limited extension rights. You, as the former employer, are required to collect the premium from the terminated employee. All health insurance carriers look solely to you as the employer for payment even though the terminated employee is required to pay 100% of the premium. If a terminated employee fails to pay his/her premium for longer than 31 days, he/she may be terminated from coverage.

Please note, that a terminated employee may only election continuation of coverage for medical and/or dental. No other lines of coverage can be elected to be continued.