COBRA (26
U.S.C. s. 4980B(f))
- This statute requires that plan administrators notify employees or their beneficiaries
within 14 days of a qualifying event of their option to continue their group health
insurance at their own expense.
- Coverage must extend for at least 18 months.
- A qualifying event can be:
- the employee's death;
- the employee's termination for other than gross misconduct;
- a reduction in the employee's hours sufficient to cause a loss of coverage;
- the employee becoming entitled to Medicare;
- divorce or legal separation of the employee; or
- a dependent child losing that status under the plan.
- The premium for continuation of coverage cannot exceed 102 percent of the prior applicable premium.
- The election period for continuation of coverage must be of at least 60 days' duration.