Continuation of Benefits Coverage (COBRA) - North Carolina

Summary of differences between federal and state regulations

North Carolina continuation coverage all employers who offer hospital, surgical or major medical insurance. Employees whose coverage would otherwise terminate because of termination of active employment are entitled to continue their coverage for themselves and their eligible spouses and dependents on the date of termination.

Continuation is available to an employee who has been continuously insured under the group policy during the period of three consecutive months immediately before the date of termination.

The employee may elect continuation for a period of not fewer than 60 days after the date of termination.

A notification of the continuation privilege must be included in each individual certification of coverage. Notification may be included on insurance identification cards or may be given by the employer, orally or in writing as a part of the exit process from the employment.

An employee whose coverage has been terminated is entitled to have a converted policy issued to him or her without evidence of insurability.

In order to be eligible for conversion, employees must make written application and the first premium payment for a converted policy no later than 31 days after the date of termination of insurance.

Continuation lasts for 18 months after the date the employee's insurance would otherwise have terminated because of termination of employment.

State

Contact

North Carolina Department of Insurance

Regulations

This state has enacted provisions in response to the federal American Recovery and Reinvestment Act of 2009 (P.L. 111-5) in regard to COBRA continuation. See Senate Bill 957 (SB 957).

Group Health Insurance Continuation and Conversion Privileges

NC General Statute – Chapter 58, Article 53, Sections 58-53-1 through 58-53-115 (§§58-53-1 to 58-53-115)

Federal

Contact

Employee Benefits Security Administration (EBSA)

Regulations

26 CFR 54.4980B-1 et seq.