Continuation of Benefits Coverage (COBRA) - Arizona

Summary of differences between federal and state regulations

Arizona adopted a mini-COBRA provision in 2018. Under the law (ARS §20-2330), a health benefits plan issued or renewed after December 31, 2018, must allow an enrollee and any qualified dependent to continue coverage after a qualifying event. Small employers — those with an average of at least 1 but fewer than 20 employees in the previous calendar year — to notify an enrollee in writing of the enrollee’s and any qualifying dependents to continue coverage under the employer’s health benefits plan upon an enrolee’s qualifying event. The AZ Insurance Department has a model notice of coverage continuation form on its website. Employers are to provide such notice within 30 days of a qualifying event.

To be eligible, an employee or beneficiary needs to have been enrolled in the plan for 90 days prior to the qualifying event.

To continue coverage, the enrollee or a qualified dependent must elect continuation coverage in writing within 60 days after the date of the notice to elect continuation coverage and submit the first month premium to the employer within 45 days after the date of election to continue coverage. If the enrollee or qualified dependent elects coverage pursuant to this section, coverage continues as if there had been no interruption. Continuation coverage lasts for up to 18 months with an additional 11 months if disability under the Social Security Act is involved.

State

Contact

Arizona Department of Insurance

Regulations

20-1380 – Guaranteed renewability of individual health coverage

20-2310 - Discrimination prohibited; preexisting conditions

20-2301 - Definitions; late enrollee coverage

20-2330 - Continuation of small group coverage; notice; duration; definitions

20-1379 - Guaranteed availability of individual health insurance coverage; prior group coverage; definitions

Federal

Contact

Employee Benefits Security Administration (EBSA)

Regulations

26 CFR 54.4980B-1 et seq.