Help me better understand COBRA and HIPAA
1. Yes, the person would be eligible for COBRA if they worked at an employer that was COBRA-eligible (that is, an employer that had more than 20 employees for most of the previous calendar year). Even if it’s a smaller employer, most states have COBRA-like extension laws to plug that gap. The only time a COBRA eligible employer can deny COBRA continuation is if the employee is fired for gross misconduct. 2. They would have 60 days after leaving (or after receiving the COBRA election notice, whichever occurs later) to elect COBRA coverage. My understanding is that they would only be allowed to continue the plan that they’re on currently. However, at open enrollment, the former employee on COBRA needs to be treated exactly like an active employee. So, at that point, they could change their election — for example, move from an expensive PPO to a cheap HMO. 3. HIPAA does help in this situation, sort of.
