Understanding COBRA and Maryland Law

Published on
August 17, 2022
Written by
Angel Murphy
Category
Divorce

When a divorce occurs, one of the more pressing issues people face is maintaining medical insurance. The common scenario in a marriage involves a spouse who works for an employer who provides a group health insurance plan, and this plan covers the other spouse. When divorce happens, the natural question comes up: what will happen to the other spouse (i.e. the dependent spouse on the employer-sponsored group plan)? In this post, we will go over the basics of COBRA – the Consolidated Omnibus Budget Reconciliation Act – which is a federal law designed to help ensure continued coverage for dependent spouses.

Basic Federal Provisions Which Marylanders Should Know

Under COBRA, a dependent spouse has the right to continue coverage with an employer-sponsored group health insurance plan following a divorce. This is a federal law, and so residents of Maryland can take advantage of this right just like residents from other states around the country. COBRA applies in cases involving divorce, but it also applies in other contexts as well; if the primary spouse loses his or her job, both spouses can continue coverage under the same plan, even after the job loss. The big caveat is that the employer no longer has to offer any sort of contribution. If a spouse invokes his or her rights under COBRA, then that spouse must foot the entire bill to remain on the group health insurance plan. Needless to say, this can have serious financial implications.

Another key point is that the COBRA provisions are not available indefinitely. At the present time, the law limits the availability of these provisions to 36 months following the initial starting date.

Provisions Specific to the State of Maryland

Whenever a state creates additional laws to supplement the provisions of COBRA, these laws are know as “Mini-COBRA” laws. Maryland has its own set of Mini-COBRA laws which add quite a few extra provisions. The following additions are currently in place in Maryland:

  1. In Maryland, the continued coverage provisions apply to businesses with fewer than 20 employees; the federal provisions only apply to businesses with 20 or more
  2. Maryland requires a minimum employment period of 3 months to qualify for the COBRA provisions
  3. For a dependent spouse to access the continued coverage benefits, that spouse must have been married for at least 30 days during the employment period
  4. Employers in Maryland must deliver a notice of election within 2 weeks (14 days) of the end of the insurance coverage
  5. Eligible persons have up to 45 days to decide whether they wish to utilize the continued coverage benefits

Most states have some variation of these Mini-COBRA laws. Comparatively, Maryland’s COBRA laws are more friendly to those seeking coverage, as opposed to employers.

Health insurance is obviously a critical issue among families in Maryland, and so the provisions of COBRA, both at the state and federal level, are highly important. Those going through a divorce should take the time to learn the fundaments of this area if they intend to maintain their current insurance plan.

Contact the Murphy Law Firm for More Information

If you’d like to learn more, reach out to The Murphy Law Firm today by calling 240-493-9116.

Angel Murphy

Personable. Passionate. Persistent.

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