COBRA Law Summaries
Michigan, COBRA Law Summaries
Michigan's health care continuation law is codified in the Michigan Statutes Annotated at Title 24, Section 24.660(410a) and 24.12264.
DEFINITIONS
“Certificate” means a contract between a health care corporation and a subscriber or a group of subscribers under which health care benefits are provided to members. A certificate includes any approved riders amending the contract (Sec. 24.660(104)).
COVERAGE
Michigan's health care continuation law covers all employers maintaining a group certificate under which health benefits are provided (Sec. 24.660(410a) and 24.12264).
PROCEDURES
An employer must provide continuation coverage to dependent children of a covered employee who would lose coverage due to attainment of a specified age and who are incapable of self-support due to mental or physical disability and dependent upon the employee for support and maintenance (Sec. 24.12264).
The covered employee must furnish satisfactory proof of the dependent child's incapacity within 31 days of the child's attainment of the specified age and, subsequently, at reasonable intervals during the two years following the child's attainment of the specified age (Sec. 24.12264).
WHAT THE EMPLOYER MUST DO
An employer must provide continuation coverage to dependent children of a covered employee who would lose coverage due to attainment of a specified age and who are incapable of self-support due to mental or physical disability (Sec. 24.12264).
Eligibility requirements.- An unmarried dependent child who would lose coverage on reaching a specified age as set forth in the policy and who is incapable of self-support due to mental or physical disability and dependent upon the employee for support and maintenance is eligible for continuation of coverage (Sec. 24.12264).
Conversion to individual policy.- If an individual subscriber has been continuously covered under a group certificate for at least three months immediately prior to termination, the subscriber, covered spouse, and dependents may elect coverage under a group conversion certificate upon termination. Termination includes loss of coverage due to voluntary or involuntary termination of employment except for termination of employment due to gross misconduct. Surviving and divorced spouses are also eligible. The subscriber is not eligible for conversion coverage if covered by a similar group plan or by Medicare (Sec. 24.660(410a)).
Notice.- Notification of the conversion privilege shall be included in each certificate of coverage. In addition, a master certificate holder must give written notice to an individual subscriber of the conversion option with 14 days after the event that causes the termination of group coverage (Sec. 24.660(410a)).
Deadlines.- An individual subscriber must elect conversion coverage not later than 30 days after termination of group coverage. The first premium must be paid at the time the individual elects conversion coverage (Sec. 24.660(410a)).
Premiums.- The premium must be determined using the aggregate experience for all such certificates issued in Michigan and in accordance with premium rates applicable to the age, class of risk, and the type and amount of coverage provided (Sec. 24.660(410a)).
Premiums.- Michigan's health care continuation law is silent with regard to the premium that can be charged for continuation coverage. However, with regard to conversion coverage, the premium must be determined using the aggregate experience for all such certificates issued in Michigan and in accordance with premium rates applicable to the age, class of risk, and the type and amount of coverage provided (Sec. 24.660(410a)).
NOTICE
Continuation coverage.- The covered employee must furnish satisfactory proof of the dependent child's incapacity within 31 days of the child's attainment of the specified age and, subsequently, at reasonable intervals during the two years following the child's attainment of the specified age (Sec. 24.12264).
Conversion coverage.- Notification of the conversion privilege shall be included in each certificate of coverage. In addition, a master certificate holder must give written notice to an individual subscriber of the conversion option with 14 days after the event that causes the termination of group coverage (Sec. 24.660(410a)).
DEADLINES
Michigan's health care continuation law is silent with regard to deadlines that must be met for continuation coverage. However, with regard to conversion coverage, an individual subscriber must elect conversion coverage not later than 30 days after termination of group coverage. The first premium must be paid at the time the individual elects conversion coverage (Sec. 24.660(410a)).
<p>Michigan's health care continuation law is silent with regard to deadlines that must be met for continuation coverage.</p>