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State Continuation: TX

Compliance & Assurance

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What is State Continuation?

State Continuation requires some group plans to continue a member's benefits coverage after they leave their employer.

Similar to COBRA, plan members are responsible for paying their plan's full premium.

Although State Continuation mimics COBRA, there are some key factors to note, because not every employer is subject to State Continuation, and not every circumstance will prompt State Continuation.

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When is State Continuation Available?

Employer is NOT Subject to COBRA

For Employers < 20 Employees

+ Group Plan is Fully-Insured

Member May Be Eligible for Nine Months State Continuation

For Employers > 20 Employees

+ Group Plan is Fully-Insured

Employer is Subject to COBRA

+ Member Has Exhausted COBRA Coverage

Member May Be Eligible for Six Months State Continuation

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How to Obtain State Continuation?

  • Maintain Health Coverage for Three Months Before Employment Ends

  • Employers Must Inform Participants About State Continuation Within 30 Days of Plan Termination

  • Contact Your Group Plan Insurer or Agent to Obtain Continuation Coverage Forms

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