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Employees May have Insurance Continuation Rights Under Both Cobra and the Illinois Insurance Code

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Most employers are familiar with the federal Consolidated Omnibus Reconciliation Act (COBRA), but few may be aware of their obligations under the Illinois Insurance Code. Employers with 20 or more employees must comply with COBRA, while all employers who provide fully insured group accident and health plans, regardless of the number of employees, must comply with the Illinois Insurance Code. This means that an employer with 3 employees is required to comply with only the Illinois Insurance code, while an employer with 22 employees is required to comply with both COBRA and the Illinois Insurance Code.

According to the Illinois Department of Insurance, when both the state and federal laws apply, the employer must offer both options to the employee. It then is up to employee to select continuation under either COBRA or the Illinois Insurance Code. It is very important that the employer notify employees of their rights under the Illinois Insurance Code, because, under certain circumstances, an employee's rights under the Illinois Insurance Code can be more generous than they, otherwise, would be under COBRA. It may seem hard to believe, but there are instances when an employee's continuation rights under the Illinois Insurance Code can span 10 years.

Momkus Ozog & McCluskey can assist you in complying with both the Illinois Insurance Code and COBRA.

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