The Consolidated Omnibus Budget Reconciliation Act (COBRA)is
a Federal law which requires most employer sponsored health care plans to offer
temporary continuation of health care coverage to certain categories of employees
and their eligible dependents when there is a termination of coverage because
of a qualifying event.
Qualifying Event - A "Qualifying Event" is a situation that
involves a covered participant and/or their eligible dependents that
results in the loss (or termination) of group health coverage (for
reasons other than gross misconduct).
| Qualifying Events |
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Employees termination of employment or reduction in hours of employment.
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Employee, Spouse and dependent child
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18 months (29 months if qualified beneficiary is disabled).
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Death of an Employee.
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Spouse and dependent child.
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36 Months.
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Employees divorce or legal separation from spouse.
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Spouse and dependent child.
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36 Months.
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Dependent child is no longer an eligible dependent.
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Spouse and dependent child.
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36 Months.
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Dependents - Dependent coverage normally will terminate on the same
date the employees coverage terminates. However, coverage of a dependent
will terminate when the dependent ceases to be a dependent, as defined herein.
In case of divorce, spouse's coverage will terminate on the last day of the
month in which the divorce occurred. For an unmarried child who attains age
19, or an unmarried dependent student who has attained age 23, or an unmarried
dependent student who no longer is a full time student prior to age 23, coverage
will be terminated on the last day of the month, in which the event occurred.
If the dependent child marries, coverage will be terminated on the last day of
the month in which the child's marriage occurs.
Spouses and Children of Deceased Employees - A deceased employee's
dependent's coverage will terminate either, (1) on the last day of the
benefit period in which death occurred, or (2) in the event the required
Voluntary Contribution was made, the last day of the benefit period for which
a Voluntary Contribution was made. However, in the event of remarriage,
the spouse's coverage will be terminated on the earlier of, (a) 90 days
from the date of remarriage, or (b) the last day of the benefit period in
which remarriage occurred. A dependent child, in this case, can make a
Voluntary Contribution to continue his or her coverage as long as he or
she qualifies as a dependent.
Retired Employees and Their Eligible Dependents - The coverage of
retired employees and their eligible dependents shall be terminated on
the day immediately preceding any Benefit Period following a Work Period
in which the amount of the required Voluntary Contribution is not received.
Field Supervisory Employees - The coverage of a Field Supervisory
Employee will be terminated on the day immediately preceding any Benefit
Period following a Work Period in which the amount of the required Voluntary
Contribution is not received.
Totally Disabled Employee - Coverage of totally disabled employees
and their eligible dependents shall terminate on the last day of the Benefit
Period in which the disabled employee recovers or on the day immediately
preceding any Benefit Period following a Work Period in which the amount of
the required Voluntary Contribution is not received. An employee who recovers
shall no longer be considered a totally disabled employee.
Uniformed Services - Coverage of an employee entering the uniformed
services will be governed by the requirements of the Uniformed Services
Employment and Reemployment Rights Act of 1994. USERRA permits covered
employees to elect to continue coverage for themselves and their dependents
during a period of absence for uniformed service. Upon reemployment with a
contributing employer, the employee will be reinstated to coverage without
any exclusions or waiting periods, except for coverage of any injury or
illness determined by the Veterans Administration to have been incurred or
aggravated during the period of uniformed service. Subsequent eligibility
will be based upon employment in the industry, in accordance with the rules
of eligibility then in effect.
