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The
Consolidated Omnibus Budget Reconciliation Act (COBRA)
gives workers and their families who lose their 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, reduction in the
hours worked, transition between jobs, death, divorce,
and other life events. Qualified individuals may be
required to pay the entire premium for coverage up to
102 percent of the cost to the plan.
COBRA
generally requires that group health plans sponsored by
employers with 20 or more employees in the prior year
offer employees and their families the opportunity for a
temporary extension of health coverage (called
continuation coverage) in certain instances where
coverage under the plan would otherwise end.
COBRA
outlines how employees and family members may elect
continuation coverage. It also requires employers and
plans to provide notice.
If you are an employee, you will become a qualified
beneficiary if you lose your coverage under the Plan
because either one of the following qualifying events
happens:.
-
Your hours of employment are reduced, or
-
Your employment ends for any reason other than your
gross misconduct.
If you are the spouse of an employee, you will become a
qualified beneficiary if you lose your coverage under
the Plan because any of the following qualifying events
happens:
-
Your spouse dies;
-
Your spouse's hours of employment are reduced;
-
Your spouse's employment ends for any reason other
than his or her gross misconduct;
-
Your spouse becomes entitled to Medicare benefits
(under Part A, Part B, or both); or
-
You become divorced from your spouse.
-
Your dependent children will become qualified
beneficiaries if they lose coverage under the Plan
because any of the following qualify events happens:
-
The employee dies;
-
The employee's hours of employment are reduced;
-
The employee's employment ends for any reason other
than his or her gross misconduct;
-
The employee becomes entitled to Medicare benefits
(Part A, Part B, or both);
-
The employee and spouse become divorced; or
-
The child stops being eligible for coverage under the
plan
as a dependent child.
F8025
(10/04) |
