Managed Benefits · Compared
Federal COBRA generally applies when an employer had 20 or more employees in the prior year. Below that line, state continuation laws, nicknamed mini-COBRA, take over, and they differ in every state that has one. Which side of the line you sit on decides your notice duties.
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Side By Side
| Factor | Federal COBRA | State continuation (mini-COBRA) |
|---|---|---|
| Source of law | Federal statute, one set of rules nationwide | Each state writes its own, where one exists at all |
| Employer size | Generally 20 or more employees in the prior year | Typically smaller groups, such as 2 to 19 in California |
| Coverage length | Generally 18 or 36 months depending on the event | Varies: up to 36 months under Cal-COBRA, up to 9 in Texas |
| Premium charged | Up to 102 percent of the plan cost, per DOL | Set by each state, often a slightly higher percentage |
| Who runs notices | Employer and plan administrator carry defined duties | Often carrier-administered, with employer duties that vary |
| Self-funded plans | Covered by federal COBRA | Generally outside the reach of state insurance law |
| After federal COBRA ends | Coverage ends at the federal limit | Some states extend further; Cal-COBRA can add 18 months |
| Multi-state workforces | One federal rulebook | One rulebook per state where coverage is issued |
Sources: U.S. Department of Labor, COBRA continuation coverage · California DMHC, federal COBRA and Cal-COBRA · Texas Department of Insurance, health care coverage guide
The Real Differences
Federal COBRA generally requires continuation coverage from group health plans sponsored by employers with 20 or more employees in the prior year, per the Department of Labor. Two details trip companies up. First, the count looks at the prior year, so a business that grew past 20 this January may not be a COBRA employer until next year, and one that shrank may still be. Second, the qualified beneficiary can be required to pay the full premium plus an administrative margin, up to 102 percent of the cost to the plan. Neither detail is intuitive, and both decide real notice obligations.
State continuation laws exist because federal COBRA leaves small-group employees uncovered. But the laws share a nickname, not a design. Cal-COBRA covers California groups of 2 to 19 employees for up to 36 months, and can even add 18 months after an 18-month federal COBRA period ends. Texas state continuation runs up to nine months for employees who are not eligible for federal COBRA. Other states sit anywhere between those poles, and some have no continuation law at all. The nickname hides the variance; the variance is the whole problem.
Continuation coverage is fundamentally a notice regime: election notices, deadlines, premium windows. Under federal COBRA those duties sit with the employer and plan administrator, and federal law allows courts to impose penalties of up to $110 per day for notice failures under ERISA, accruing per beneficiary, on top of claims from the person who never got the notice; the DOL's COBRA compliance resources spell out the notice duties. Under many state laws the carrier shoulders more of the mechanics, but the employer still has to report qualifying events correctly and on time. Either way, a spreadsheet and a busy office manager is the riskiest possible system.
The dangerous years are the transition years. A company crossing the 20-employee line changes rulebooks, usually without noticing, because the count is based on the prior year. A company hiring its first employee in a new state may inherit that state's continuation, notice, and timing rules for coverage issued there. And a company that is both, growing and multi-state, can owe federal COBRA duties and state-specific obligations at the same time. This is precisely the operational work a third-party administrator exists to carry: someone whose actual job is knowing which law applies to which person in which state.
Which Applies To You
Federal COBRA likely does not apply to you, but your state continuation law might, and its rules are nothing like the articles you read about COBRA. Check your state, not the federal statute.
You are in the transition zone. The prior-year count decides when federal COBRA duties actually attach, and the answer is worth confirming precisely, because the notice clock starts with the next qualifying event.
Federal COBRA governs your plan, and state rules can still shape what happens after it, like Cal-COBRA extensions for California employees. This is the profile where outsourced administration pays for itself fastest.
Every State
Whether your state has a mini-COBRA law, and how long continuation runs where it does. Tap a state for its statute-level rules. Federal COBRA still governs employers with 20 or more employees everywhere.
| State | State mini-COBRA law | Max continuation |
|---|---|---|
| Alabama | No state law | Federal COBRA only |
| Alaska | No state law | Federal COBRA only |
| Arizona | Yes | Up to 18 months |
| Arkansas | Yes | Up to 4 months |
| California | Yes | Up to 36 months |
| Colorado | Yes | Up to 18 months |
| Connecticut | Yes | Up to 30 months |
| Delaware | Yes | Up to 9 months |
| Florida | Yes | Up to 18 months |
| Georgia | Yes | Up to 3 months |
| Hawaii | Yes | Up to 3 months |
| Idaho | No state law | Federal COBRA only |
| Illinois | Yes | Up to 12 months |
| Indiana | Yes | Up to 12 months |
| Iowa | Yes | Up to 9 months |
| Kansas | Yes | Up to 18 months |
| Kentucky | Yes | Up to 18 months |
| Louisiana | Yes | Up to 12 months |
| Maine | Yes | Up to 12 months |
| Maryland | Yes | Up to 18 months |
| Massachusetts | Yes | Up to 36 months |
| Michigan | No state law | Federal COBRA only |
| Minnesota | Yes | Up to 18 months |
| Mississippi | Yes | Up to 12 months |
| Missouri | Yes | Up to 36 months |
| Montana | No state law | Federal COBRA only |
| Nebraska | Yes | Up to 6 months |
| Nevada | Yes | Up to 18 months |
| New Hampshire | Yes | Up to 36 months |
| New Jersey | Yes | Up to 36 months |
| New Mexico | Yes | Up to 6 months |
| New York | Yes | Up to 36 months |
| North Carolina | Yes | Up to 18 months |
| North Dakota | Yes | Up to 9 months |
| Ohio | Yes | Up to 12 months |
| Oklahoma | Yes | Up to 4 months |
| Oregon | Yes | Up to 9 months |
| Pennsylvania | Yes | Up to 9 months |
| Rhode Island | Yes | Up to 18 months |
| South Carolina | Yes | Up to 6 months |
| South Dakota | Yes | Up to 18 months |
| Tennessee | Yes | Up to 15 months |
| Texas | Yes | Up to 9 months |
| Utah | Yes | Up to 12 months |
| Vermont | Yes | Up to 18 months |
| Virginia | Yes | Up to 12 months |
| Washington | Yes | See state page |
| West Virginia | Yes | Up to 18 months |
| Wisconsin | Yes | Up to 18 months |
| Wyoming | Yes | Up to 12 months |
Each linked state page cites its own statute. This page is general information, not legal advice.
Where BEG Fits
BEG Managed Benefits, powered by isolved, includes COBRA and state continuation support scoped to your company and your states, alongside enrollment, eligibility data, and ACA reporting. You keep your broker for coverage decisions; the deadline-driven administration moves to a team whose job is the calendar. Scope and plans live on the Managed Benefits overview, and if you are weighing doing this internally, start with outsourced vs in-house benefits administration.
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Questions
Mini-COBRA is the informal name for state continuation laws that let employees of smaller companies keep group health coverage after a qualifying event, filling the gap below the federal 20-employee threshold.
Generally only if your group health plan is sponsored by an employer with 20 or more employees in the prior year, per the Department of Labor. Below that, state continuation law may apply instead.
Cal-COBRA is the California continuation law. It applies to employers and group plans covering 2 to 19 employees and can extend coverage up to 36 months, per the California Department of Managed Health Care.
No. Duration, employer-size thresholds, eligibility, and notice duties vary widely by state. California allows up to 36 months while Texas state continuation runs up to nine months, for example.
It depends on the law. Under federal COBRA the employer and plan administrator carry notice duties. Under many state laws, including Cal-COBRA, the health plan handles more of it, but employers keep obligations.
Federal law allows court-imposed penalties of up to $110 per day for notice failures under ERISA, plus lawsuits from affected beneficiaries. The exposure accrues per person, per day, which is why administrators track it.
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