Key Takeaways
- Federal COBRA applies to Colorado employers with 20 or more employees, requiring 18-36 months continuation
- Colorado state continuation applies to employers with fewer than 20 employees
- COBRA qualifying events include termination, reduction in hours, divorce, and loss of dependent status
- Employees have 60 days to elect COBRA and 45 days to pay the initial premium
- COBRA premiums can be up to 102% of the full premium (150% for disability extension)
Last updated: January 2026
Colorado COBRA and State Continuation Rights
Colorado employees have continuation rights under both federal COBRA and state law.
Federal COBRA in Colorado
Who COBRA Applies To
Federal COBRA applies to:
- Private employers with 20 or more employees
- State and local governments
- Churches with 20+ employees (if elected)
COBRA Does NOT Apply To
- Employers with fewer than 20 employees
- Federal government (separate rules)
- Some church plans
Qualifying Events and Periods
COBRA Qualifying Events
| Qualifying Event | Maximum Period |
|---|---|
| Termination (not gross misconduct) | 18 months |
| Reduction in hours | 18 months |
| Employee's death | 36 months |
| Divorce or legal separation | 36 months |
| Medicare eligibility | 36 months |
| Child loses dependent status | 36 months |
Extended Periods
| Situation | Extension |
|---|---|
| SSA disability within 60 days | 29 months total |
| Second qualifying event | 36 months total |
Exam Tip: Basic COBRA is 18 months for termination/reduction in hours, but 36 months for events affecting dependents.
COBRA Notice and Election Requirements
Employer/Plan Administrator Duties
| Requirement | Timeframe |
|---|---|
| Initial COBRA notice | When first covered |
| Qualifying event notice | Within 14 days |
| Election notice | Within 14 days |
Employee/Beneficiary Duties
| Requirement | Timeframe |
|---|---|
| Report divorce/separation | Within 60 days |
| Report child losing status | Within 60 days |
| Elect COBRA | Within 60 days |
| Pay initial premium | Within 45 days |
| Pay ongoing premiums | Within 30 days |
COBRA Premiums
Maximum Premium Amounts
| Situation | Maximum Premium |
|---|---|
| Standard COBRA | 102% of full premium |
| Disability extension (months 19-29) | 150% of full premium |
What the Premium Includes
- Employer's portion
- Employee's portion
- Administrative fee (2% or 50%)
Colorado State Continuation
For employers with fewer than 20 employees:
Colorado Mini-COBRA
| Feature | Requirement |
|---|---|
| Employer Size | Fewer than 20 employees |
| Duration | Similar to federal COBRA |
| Premium | Similar to COBRA limits |
| Coverage | Same as group plan |
Key Differences
| Feature | Federal COBRA | State Continuation |
|---|---|---|
| Employer size | 20+ | Under 20 |
| Enforcement | DOL | Colorado DOI |
| Penalties | Federal | State |
COBRA Termination
When Coverage Ends
| Event | Effect |
|---|---|
| Premium not paid | Coverage terminates |
| Maximum period expires | Coverage ends |
| All group coverage ends | Coverage terminates |
| New group coverage | May terminate |
| Medicare eligibility | May terminate |
Grace Periods
| Payment Type | Grace Period |
|---|---|
| Initial premium | 45 days |
| Ongoing premiums | 30 days |
Coordination with Other Coverage
Options When COBRA-Eligible
| Option | Consideration |
|---|---|
| COBRA | 102% of full premium |
| Spouse's plan | May be less expensive |
| Marketplace | May qualify for subsidies |
| Medicare | If eligible |
| Medicaid | If income qualifies |
COBRA and Medicare
- Medicare generally becomes primary
- COBRA can supplement Medicare
- Cannot require COBRA election over Medicare
Producer Responsibilities
Key Counseling Points
- Compare options - COBRA vs. alternatives
- Calculate costs - 102% is full premium
- Consider duration - How long needed
- Check marketplace - May qualify for subsidies
- Meet deadlines - 60 days to elect, 45 days to pay
Common Questions
| Question | Answer |
|---|---|
| How much is COBRA? | Up to 102% of full premium |
| How long do I have? | 60 days to elect |
| Can I get it later? | No, must elect within period |
| Is marketplace better? | Depends on subsidy eligibility |
Exam Tip: Help clients understand all options when losing group coverage. COBRA may not always be the best choice if marketplace subsidies are available.
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