What’s the difference between Louisiana State Continuation and COBRA?
Louisiana State Continuation and COBRA (Consolidated Omnibus Budget Reconciliation Act) are both programs that provide individuals with the option to continue their group health insurance coverage after they leave their jobs. However, there are some key differences between the two programs:
Eligibility: COBRA is a federal program that is available to individuals who are covered by group health insurance plans provided by employers with 20 or more employees. Louisiana State Continuation, on the other hand, is a state-specific program that is available to individuals who are covered by group health insurance plans provided by employers with 2-19 employees.
Length of Coverage: COBRA allows individuals to continue their group health insurance coverage for up to 18 months after they leave their jobs, while Louisiana State Continuation allows individuals to continue their coverage for up to 12 months after they leave their jobs.
Premiums: Individuals who elect to continue their coverage under COBRA are typically required to pay the full cost of the insurance premiums, plus a 2% administrative fee. Under Louisiana State Continuation, individuals are typically required to pay 102% of the premium cost.
Qualifying events: COBRA allows individuals to continue their group health insurance coverage after they leave their jobs due to a wide range of qualifying events, such as termination of employment, reduction in hours, or death of an employee. Louisiana State Continuation, on the other hand, allows individuals to continue their group health insurance coverage after they leave their jobs only due to termination of employment or reduction of hours.
In conclusion, COBRA and Louisiana State Continuation are both programs that provide individuals with the option to continue their group health insurance coverage after they leave their jobs. However, there are key differences between the two programs such as eligibility, length of coverage, premiums and qualifying events. Individuals should carefully consider the specific benefits and costs of each program and which one is more appropriate for their situation.
