COBRA (29 U.S.C. s. 1161) (26 CFR 54.4908B-1) (29 CFR Part 2590)
- 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.
- A civil action can be brought in the U.S. District Court where the plan is administered, where the breach took place, or where the defendant resides or may be found. (29 U.S.C. s. 1132(e))