COBRA Federal and State Regulations

MISSISSIPPI CODE OF 1972

§ 83-9-51. Group policy defined; election to continue coverage after employment termination; continuation of coverage by dependent spouse or child; exclusions; payment; termination of coverage; notice.

(1)  “Group policy” means a group accident and health insurance policy or group certificate delivered or issued for delivery in this state by an insurer; a nonprofit hospital, medical and surgical service corporation; a health maintenance organization; a fully insured multiple employer welfare arrangement; or any combination thereof.

(2)  A group policy delivered or issued for delivery in this state which insures employees or members, and their eligible dependents, if they have elected to include them, for hospital, surgical or major medical insurance on an expense incurred or service basis, other than hospital daily indemnity plans, specified disease only policies, or other limited, supplemental benefit insurance policies, shall provide that employees or members whose insurance for these types of coverage under the group policy would otherwise terminate because of termination of active employment or membership, or termination of membership in the eligible class or classes under the policy, shall be entitled to continue their hospital, surgical and medical insurance under that group policy, for themselves and their eligible dependents with respect to whom they were insured on the date of termination, subject to all of the group policy’s terms and conditions applicable to those forms of insurance and to the conditions specified in this section. The terms and conditions set forth in this section are intended as minimum requirements and shall not be construed to impose additional or different requirements upon those group hospital, surgical or major medical plans already in force, or hereafter placed into effect, that provide continuation benefits equal to or better than those required in this section.

(3)  Continuation shall only be available to an employee or member or an eligible dependent who has been continuously insured under the group policy, or for similar benefits under any other group policy that it replaced, during the period of three (3) consecutive months immediately before the date of termination. The continued policy must cover all dependents covered under the group policy. A dependent spouse of an employee or member may elect continuation of dependent spouse and dependent child coverage for a period of coverage not to exceed twelve (12) months after: (a) the date of the death of the employee or member; (b) the date of the spouse’s divorce from the employee or member; or (c) the date that the employee or member becomes entitled to Medicare benefits as provided under Title XVIII of the Social Security Amendments of 1965, as then constituted or later amended. 

A dependent child of an employee or member may elect continuation of his or her coverage for a period not to exceed twelve (12) months after the child ceases to be an eligible dependent of the employee or member.

(4)  Continuation shall not be available for any person who is or could be covered by any other arrangement of hospital, surgical or medical coverage for individuals in a group, whether insured or uninsured, within thirty-one (31) days immediately following the date of termination, or whose insurance terminated because of fraud or because he failed to pay any required contribution for the insurance, or who is eligible for continuation under the provisions of the federal Consolidated Omnibus Budget Reconciliation Act of 1987 (COBRA) or who becomes entitled to Medicare benefits.

(5)  Continuation shall not include dental, vision care or any other benefits provided under the group policy in addition to its hospital, surgical or major medical benefits.

(6)  An employee or member or an eligible dependent electing continuation shall pay to the insurer, in advance, the amount of contribution required, which shall not be more than the full group rate for the instance applicable to the employee or member or an eligible dependent under the group policy on the due date of each payment. The employee or member or an eligible dependent shall not be required to pay the amount of the contribution less often than monthly. In order to be eligible for continuation of coverage, the employee or member or an eligible dependent shall make a written election of continuation on a form furnished by the insurer and pay the first contribution, in advance, to the insurer on or before the date on which the employee’s or member’s or eligible dependent’s insurance would otherwise terminate except as provided herein.

(7)  Continuation of insurance under the group policy for any person shall terminate on the earliest of the following dates:

(a) The date twelve (12) months after the date the employee’s or member’s insurance under the policy would otherwise have terminated because of termination of employment or membership.

(b) The date ending the period for which the employee or member or dependent last makes his required contribution, if he discontinues his contributions.

(c) The date the employee or member or dependent becomes or is eligible to become covered for similar benefits under any arrangement of coverage for individuals in a group, whether insured or uninsured.

(d) The date on which the group policy is terminated or, in the case of a multiple employer plan, the date his employer terminates participation under the group master policy.

(e) The date on which an enrolled member of a health maintenance organization legally resides outside the service area of the organization.

(f) The date the surviving spouse or former spouse of the employee or member remarries and becomes covered under a group health plan that does not exclude coverage for preexisting conditions.

(g) The date the employee or member or dependent becomes entitled to benefits under Medicare.

(8)  A notification of the continuation privilege shall be included in each certificate of coverage.

(9)  In the event of the employee’s or member’s death, the insurer shall provide notice of the continuation privilege within fourteen (14) days of the death to the person who is eligible to elect continuation. Such person has thirty (30) days after the notice to elect continuation.

(10)  In the event that a dependent child of the employee or member ceases to be an eligible dependent, the insurer shall provide notice of the continuation privilege to the child within fourteen (14) days after the employee or member notifies the insurer of the child’s ineligibility. The child has thirty (30) days after the notice to elect continuation of coverage.

(11)  In the event of the employee’s or member’s divorce from his or her dependent spouse, the insurer shall provide notice of the continuation privilege to the spouse within fourteen (14) days after the employee or member notifies the insurer of the divorce. The spouse has thirty (30) days after the notice to elect continuation of coverage. 

Sources: Laws,  1993, ch. 492, § 3; Laws, 1995, ch. 541, § 1, eff from and after July 1, 1995.

All copyrights and other rights to statutory text are reserved by the State of Mississippi.

Mississippi’s Cobra Law Summary

Overview

Mississippi’s mini-Cobra regulation provides continuation coverage for maximum of one year.  The state law provides for a 3-month waiting period. Premium payment cannot reach above 100 percent.

Likewise, the law provides several more constraints:

• Benefit restrictions placed on continuation of coverage
• Requirement for individuals to elect and pay the first premium at the time or before the termination of prior group coverage.
• Coverage is also terminated if an enrolled member moves out of the HMO’s eligible area.

Employment and Membership Termination

Policies must offer one year of continuation coverage for employees, members, and dependents who lose coverage due to employment conclusion, cessation of group policy, or change in group membership.

Continuations of coverage benefits that are permitted by the Mississippi law are hospital, surgical, and major medical.  To qualify as eligible, individuals must possess group coverage for three months prior to termination.

Continuation of health benefits are not available when individuals:

• Who are enrolled or could gain coverage under another plan within 31 days of termination.
• Whose insurance terminated for reasons of fraud or unpaid premiums.
• Who qualify for COBRA coverage under the federal statute.

Election of Coverage

Members must elect coverage on a specified form provided by the insurer. Furthermore, they must pay the first month’s premium before or on the date when group coverage would end. Mississippi law regulates that premiums cannot exceed 100 percent of the group rate.

Continuation of insurance benefits may end early if:

• Enrolled members fail to pay premiums
• Individual becomes covered under a similar plan or becomes eligible for such coverage
• The insurance health plan ends
• Employer discontinues his or her participation in a multi-employer plan
• An enrolled HMO member resides outside of HMO’s service area.

Spouse and Dependents

Health policies must provide up 12 months of health insurance continuation to:

• A dependent spouse or member who loses coverage due to employee’s or member’s death, Medicare entitlement, or divorce.
• A dependent child who loses dependent status for any reason.

The insurer has to provide notice of continuation rights within 14 days in case of employee’s or member’s death or if the dependent child is no longer eligible for coverage due to status change.

The Mississippi law also specifies two additional events that deter continuation of insurance benefits:

• Entitlement to Medicare
• Remarriage of the surviving or former spouse, if he or she gains coverage under a group health plan with no preexisting conditions

Overview of federal COBRA

Employers who offer group health plans to a minimum of 20 employees need to comply with the Employee Retirement Income Security Act of 1974(ERISA). The amendment, the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA), requires that most group health plans provide temporary continuation of coverage.

For more information 

You can find the COBRA regulation in the Federal Code section and the Official Employer’s Guide to COBRA in the Guides section.