• In 1985, Congress enacted the Consolidated Omnibus Budget Reconciliation Act, better known as COBRA. COBRA gives employees who have left a company either via layoff or termination access to the health insurance plan that they were eligible for as an employee, although at a higher, out-of-pocket cost. While most states follow federal guidelines, the state of Florida is one of many that have enacted mini-COBRA laws for residents.
  
  

Eligibility

• Under both federal and Florida state law, individuals who have left a company with a minimum of 20 full-time employees have the right to continue their health insurance under COBRA; in addition, Florida law allows for continuation of coverage for employees of a company with between two and 19 full-time employees. To be considered eligible for coverage, an individual must meet one of three circumstances: be an employee that has been terminated or had a reduction in hours for reasons other than gross misconduct; be a spouse of an eligible employee; or be a dependent of an eligible employee.
  
  

Coverage

• The Florida Mini-COBRA law requires that eligible employees give written notice to their insurance company or HMO within 30 days of their termination, instead of the 60 days allowed under federal law. It is the responsibility of the employee, not the employer, to notify the insurance company of her desire to continue coverage under COBRA. Employees and their dependents are eligible for COBRA insurance coverage for up to 18 months after their application. If an individual is totally disabled, she is eligible for an extension of coverage for up to 29 months. The insurance plan will remain the same as the plan the recipient had when employed.
  
  

Paying for Coverage

• After approving an application for coverage, the insurance company or HMO is responsible for submitting invoices and administering coverage instead of the employer. The recipient will submit payments directly to the insurance company on a monthly basis. Under the Florida Mini-COBRA law, the premiums paid for coverage must not exceed 115 percent of the group rate for the 18 months of coverage; those who qualify for the disability extension must pay a premium not exceeding 150 percent of the group rate. If a recipient misses a payment, the insurance company does have the right to end coverage.