Final answer:
Larry may be able to continue his health coverage for up to 18 months under COBRA if applicable, though Steve's company size might exempt it from COBRA, which often applies to employers with more than 20 employees. Larry would have to pay the full premium, including any portion previously covered by the employer.
Step-by-step explanation:
According to COBRA, Larry can continue his health coverage through Steve's company for up to 18 months after being laid off. COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, gives individuals who lose their job-based health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss.
However, it's important to note that employers with fewer than 20 employees are generally exempt from COBRA. Steve's company, having only 12 employees, may not be subject to COBRA requirements. However, some states have similar laws, often referred to as 'mini-COBRA', which extend similar rights to employees of smaller companies. If applicable, the length of coverage under such state laws may vary.
For those eligible for COBRA, the coverage is typically identical to what the employee had while employed, but under COBRA, the individual must pay the full premium, including any share the employer used to pay, plus a small administrative fee.