On May 21, 2012, in Somers v. Cudd Energy Services., Inc., 2012 WL 1836269 (W.D. Okla. 2012), the U.S. District Court for the Western District of Oklahoma held that an employer’s COBRA system for mailing COBRA notices protected it against … Continue reading
COBRA generally applies to all private-sector group health plans maintained by employers that have at least 20 employees on more than 50 percent of its typical business days in the previous calendar year. Both full and part time employees are counted to determine if the company is COBRA eligible. Each part time employee counts as a fraction of a full time employee, with the fraction equal to the number of hours that the part time employee worked divided by the hours and employee must work to be considered full time.
The law applies to sponsored state and local governments but does not apply to plans sponsored by the Federal government or by churches and certain church-related organizations.
Many states have adopted similar laws to COBRA that provide continuation coverage to the employees and their dependents of small employers (under 20 employees). Texas requires small employees to offer State Continuation for 9 months for those that have been on the medical plan for three months prior to their termination. Please check Texas Department of Insurance for more information about Texas State Continuation.