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COBRA
Administration
COBRA
(the Consolidated Omnibus Reconciliation Act of 1985) was established
to provide continuing group health care coverage for those whose
coverage would otherwise be terminated.
This
law applies to group health plans maintained by employers with twenty
or more full and part time employees, their spouse, and/or dependent
children may be eligible for coverage continuation under COBRA if
a qualifying event occurs. Qualifying events are:
For
Employees
-
Voluntary or involuntary termination of employment for reasons
other than "gross misconduct."
- Reduction
in the number of hours of employment.
For
Spouses
-
Termination of the covered employee's employment for any reason
other that "gross misconduct."
- Reduction
in the hours worked by the covered employee.
- Covered
employee's entitlement to Medicare.
- Divorce
or legal separation of the covered employee.
- Death
of the covered employee.
For
Dependent Children
-
Termination of the covered employee's employment for any reason
other that "gross misconduct."
- Loss
of "dependent child" status under the plan rules.
- Covered
employee's becoming entitled to Medicare.
- Divorce
or legal separation of the covered employee.
- Death
of the covered employee.
If
an eligible employee (and/or their dependents) is entitled to COBRA
continuation, the employer must give them notice stating their right
to choose to continue benefits provided by the plan. The qualified
beneficiary must then notify the employer that they wish to accept
coverage within sixty days from the qualified event date or they
lose all rights to benefits. Once COBRA coverage is chosen, the
qualified beneficiary is required to pay for the coverage.
If
you would like to learn more about COBRA Continuation, please click
here, or you may contact:
U.S.
Department of Labor
Pension and Welfare Benefits Administration
Division of Technical Assistance and Inquiries
200 Constitution Ave., NW, Room N-5658
Washington, DC 20210
Continuing
Health Care Coverages is an employer's guide to providing COBRA
coverages to former employees and their beneficiaries. You may obtain
this guidebook by writing to:
Charles
D. Spencer & Associates, Inc.
250 S. Wacker Drive, Suite 600
Chicago, IL 60606-5834
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