applies if the employer has twenty or more employees
COBRA provides for continuation of health plan coverage for up to 18 months following the work separation
COBRA rights accrue once a "qualifying event" occurs - basically, a qualifying event is any change in the employment relationship that results in loss of health plan benefits
does not apply if the employee was terminated for "gross misconduct", but the burden of proving that is on the employer
in the case of an employee with a spouse (see your state's definition of "spouse"), it is essential that an employer notify both the employee and the employee's spouse of the employee's COBRA rights
Texas "COBRA" law - the Small Employer Health Insurance Availability Act requires health benefit continuation rights for employees (and their beneficiaries) of company health plans if the company has two to 50 employees; the state law is very similar to the federal law, but with a shorter benefit continuation period (up to six months following the qualifying event); if the employee had federal COBRA coverage as well, the six months under Texas law begins after the federal COBRA period expires; more information is available from the Texas Department of Insurance at http://www.tdi.state.tx.us/pubs/consumer/cb040.html.