Both Utah 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. Utah's mini-COBRA law covers all insured group health benefit plans regardless of the number of employees, provides for a shorter period of continuation, but does not apply to individuals eligible for federal COBRA continuation (UT Stat. Sec. 31A-22-722).
Utah's mini-COBRA requirements provide that an employee and his or her covered spouse and dependents who have been continuously covered under a group policy for 3 months immediately prior to the termination of coverage may continue coverage under the policy for a period of 12 months when coverage is lost for the following reasons:
• Involuntary termination
• Divorce or legal separation
• Loss of dependent status
An individual is not eligible to continue coverage under state law if he or she:
• Failed to pay any required individual contribution;
• Acquires other group coverage that covers all preexisting conditions, including maternity, if maternity coverage is provided;
• Committed fraud in connection with the coverage;
• Made an intentional misrepresentation of material fact under the terms of the coverage;
• Was terminated for gross misconduct; or
• Is eligible for continuation coverage under federal COBRA.
Employers are required to provide written notification of the right to mini-COBRA coverage and the amount of the premium for such coverage, including the how, where, and when the ...