COBRA provides that certain qualified beneficiaries who would otherwise lose their group health coverage due to termination of employment or long term disability may elect to continue coverage under the same group plan for up to 36 months. COBRA allows the employee to buy the same coverage by paying monthly premiums equal to 102% of the original group insurance premium. The two percent is allowed for administrative expenses. COBRA applies to all private companies and state and local governments with at least 20 employees.
If a recipient for whom the Department is paying a premium terminated his/her employment and COBRA coverage is available, the Department will determine if it is cost effective to contribute to the COBRA premium.
10-144 C.M.R. ch. 103, § IV-4.5