Are insurers in Colorado required to offer a continuation of coverage option under group health plans?

Insurers in Colorado are indeed required to offer a continuation of coverage option under group health plans, primarily through the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA is a federal law that allows certain employees and their dependents to continue their group health insurance coverage for a limited period after a qualifying event, such as job loss, reduction in work hours, or other life events that would ordinarily result in the loss of coverage.

This requirement applies to group health plans maintained by employers with 20 or more employees. Under COBRA, eligible individuals can typically extend their coverage for up to 18 months, and in some cases, longer for certain disabilities. In Colorado, state laws and specific regulations may also provide additional protections or extensions, but the federal COBRA regulation establishes the baseline requirement for continuation of coverage under group health plans.

The other options do not accurately reflect the obligations of insurers under Colorado law. For instance, stating that there is no requirement or limited requirements only for small businesses or individuals negates the established federal protections that exist under COBRA for larger employers. The requirement for continuation of coverage through COBRA is a vital consumer protection that ensures that individuals do not face a sudden loss of health insurance coverage during transitional periods.