Both Iowa law and the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) permit employees to continue their group health coverage if they leave the group for certain specified reasons. According to federal law, when comparing state and federal continuation rights, employees may apply the law that is most favorable to their situation. While Iowa's law covers all employers regardless of size, it provides for shorter continuation periods than does federal COBRA (IA Code Sec. 509B.3).
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Iowa's continuation law covers insured group health insurance plans sponsored by all employers except those that self-insure. Continuation need not be provided for dental, vision, and prescription plans. Continuation is only available to an individual who was continuously insured under the group policy, and for similar benefits under any group policy that it replaced, during the entire 3-month period immediately preceding the termination of coverage. Continuation does not have to be provided to a person who is or could be covered by Medicare. In addition, continuation does not have to be provided to an individual who is covered or is eligible to be covered by another group insured or uninsured arrangement that provides ...