We have fewer than 20 employees. Can former employees elect to receive federal COBRA continuation coverage for 18 months, or must they accept Texas “COBRA” coverage for six months?
With fewer than 20 employees, federal COBRA continuation coverage is not available. Texas state law allows continuation coverage for up to six months, so that would be the best option for the former employees. Remember that the 65% COBRA premium subsidy applies to both federal and state COBRA benefits; the subsidy applies only to those who were laid off or terminated for reasons other than gross misconduct – it does not apply to employees who quit or were fired for gross misconduct.
