- What is COBRA?
- What is a qualifying event?
- What are the required notifications?
- What about COBRA Premiums?
- What is a disability extension?
-
What is a
Multiple Qualifying Events?
COBRA time line
Legal explanation of the duration of COBRA continuation coverage
An employees guide to health benefits under COBRA
COBRA Continuation Coverage Assistance Under ARRA (The American Recovery and Reinvestment Act of 2009)
A: In July of 1986, Congress passed the Consolidated Omnibus Budget Reconciliation Act, commonly known by its acronym COBRA. In the 1980's (as with today), the population of uninsured Americans was growing at an alarming rate. Congress determined that many of these uninsured individuals have some relationship to an employer. Their thought was to create legislation that would allow employees and covered dependents the ability to continue their group coverage for a reasonable amount of time when they experience a "qualifying event."
Q:
What is a qualifying event?
A: re are two types of qualifying events; ones that affect employees and others that affect an employee's dependents. The two qualifying events that affect employees are Termination of Employment (for reasons other than "gross misconduct") and a Reduction in Work Hours. To be considered a qualifying event, the employee must have a loss of coverage. (Example: If an employee has a reduction in work hours but is still eligible to continue under the group plans, there is no qualifying event.) Employees experiencing one of these events are eligible to continue coverage for up to eighteen months.
Dependents have their own qualifying events; Death of the Employee, Divorce or Legal Separation, Employee's Medicare Entitlement and Dependents that no longer meet the definition of a "Dependent" under the group insurance contract. As you can see, covered dependents that experience these qualifying events (in most cases) will experience a loss of coverage and should be offered the right to continue for up to thirty-six months.
Each member losing coverage upon experiencing one of these events is classified as a "qualified beneficiary." Each qualified beneficiary has independent rights under COBRA. This means a spouse or dependent child may enroll on the group plan as if they were an employee of the company. They may only enroll on the plan(s) they were enrolled on the day prior to the qualifying event (unless they move from a specific service area and another plan is available). At open enrollment time, the qualified beneficiary has the same rights as "similarly situated active employees" and may add/change plans, even add dependents. Dependents added during open enrollment do not receive the same rights as a qualified beneficiary but merely may continue coverage with the qualified beneficiary. In the software, we refer to qualified beneficiaries as "qualifiers."
Q:
What are the required
notifications?
A: COBRA requires employers (with twenty or more employees - some states reducing this minimum to two) to provide written notifications to inform employees and their covered dependents of their rights to continuation coverage. The law requires three notices; the Initial COBRA Notification, Qualifying Event Notice and a notice of Conversion rights under eligible group plans. All notifications may be sent by first class mail but some employers prefer to send them in a form that requires a signature as proof of receipt. The Initial COBRA notification is designed to be sent to newly hired employees as they enroll on one or more of the group plans. This notification explains COBRA and their rights t
The COBRA Qualifying Event Letter is the notice sent when an employee/dependent experiences a qualifying event. This letter is similar to the Initial COBRA Notification in that it explains COBRA but it also details the cost for coverage and the enrollment procedures. Anytime you remove someone from the insurance plan, it should trigger you to examine if a qualifying event has occurred. If so, you need to send a Qualifying Event Letter. To produce the Qualifying Event Letter in the software, click the File Menu followed by the New COBRA Qualifier option. Enter the information on both the employee and covered dependents. (If the employee elected not to cover his/her dependents on any group plans, do not enter them into the system.) Once completed, the Things-to-Do list will state "Send COBRA Qualifying Event Letter to . . ." Double click on that line in the list and the letter will be produced, importing the information specific to that individual. This notice should be sent within fourteen days of the later of the qualifying event date or the date coverage is lost.
The Conversion Notification explains an employee's right when they lose coverage under a group plan. Not all plans offer a conversion right and the appropriate box should be checked under the insurance plan information screen. If your plan offers a conversion privilege, the system will track a COBRA Participant's coverage and 180 days prior to the end of their COBRA time frame, a line in the Things-to-do box will advise you to send this letter. A conversion policy is an individual plan whereby the employee/dependent does not have to qualify for coverage. Usually, conversion policies are age-rated and have higher rates than standard individual plans.
COBRA Acceptance - The natural progression of events is that Active employees and covered dependents become qualifiers who then become COBRA Participants (when they agree to pay for premiums for continuation coverage). As part of the COBRA Qualifying Event Letter, a Summary and Election Form is provided so the qualifier may notify you of their desire to continue coverage. If you receive this form or are contacted directly, you should have them complete a COBRA application for the insurance carrier(s) and notify the software so it may set up a billing account. Qualifiers have sixty days from the later of date they lose coverage or the date on the Qualifying Event Letter to notify you of their desire to accept COBRA.
Since COBRA coverage is continuation coverage, you must add them back onto the group plan with no lapse of coverage. This could mean going back a few months to retro-actively add them back onto the plan(s). There is one exception when you would not retro-actively enroll the qualifier and that is when the employee removes a dependent from the plan "in anticipation of a future qualifying event." The most common situation is when an employee removes a spouse and later they are divorced. In that situation, you would offer COBRA to the spouse effective on the date of the divorce.
A: Once a qualifier elects COBRA and becomes a participant, they are required to make payments to your organization. Premiums are based upon the group rates your firm is charged. As an administration fee, you may add two percent to help cover costs. The participant is required to make payments in a timely fashion. They have a forty-five day grace period to make their initial premium payment. Thereafter, they have a thirty-day grace period. If they do not pay within these time frames, you may terminate their coverage. The software tracks payments and notifies you when someone has not paid in a timely fashion. Once notified, you should prepare the termination notice and then terminate them from the plan effective the last day premiums were paid through. If no payments were ever made, terminate coverage back to the original date they were terminated from the group plan. You will want to make sure you notify the insurance companies as soon as possible because most of them have implemented a maximum retro-termination policy, only allowing you to receive premium credits back sixty days.
There will be times when participants will not pay you prior to you submitting group premiums to the insurance carriers. If you have not received COBRA payments, it is recommended you do not pay the carrier for their premiums.
Q:
What is a disability extension?
A: If a qualified beneficiary is considered "disabled" by Social Security within the first sixty days of COBRA, the law provides for that individual and all others covered under the same policy to extend their coverage from eighteen to twenty-nine months. This eleven month extension comes with a price. Employers may charge a fifty percent administration fee during this extension. The software will make the necessary change to premiums, automatically.
Q:
What is a Multiple Qualifying
Events?
A: If an employee initially experiences a termination or employment or reduction in work hours and later a covered dependent experiences another qualifying event, the dependent should be offered the right to continue up to thirty-six months from the original COBRA start date. In the software, click the Events Menu followed by the Multiple Qualifying Event option. Enter the information on the qualifier and the system will create a new billing account for them and produce a letter explaining their rights.
This is a very brief summary of COBRA. The actual law is hundreds of pages and is very complex. We appreciate your confidence in our software and hope that we can continue to provide you with useful information to assist with maintaining your COBRA compliance. Our goal is to keep you informed about COBRA, proposed legislation and the operation of our software. If you have any recommendations as to content of these monthly newsletters or software enhancements, feel free to email us at help@csisupport.com.
2) Handling COBRA Administration in a Divorce/Legal Separation Situation - The Internal Revenue Service issued Ruling 2002-88 in December, 2002 clarifying certain rules when an employee drops his/her spouse from group coverage "in anticipation" of a divorce/legal separation. The final regulations specified that dependents who are dropped from a group plan "in anticipation" of a qualifying event constitutes a qualifying event (although they were not on the group plan on the day prior to the qualifying event.) The question arises as to when COBRA coverage should begin? Does it begin on the day after benefits are terminated or the day of the divorce/legal separation?
Ruling 2002-88 states that COBRA benefits should begin on the date of the divorce and not retroactively back to the date coverage is lost. Covered spouses are notified of their COBRA rights in the Initial COBRA Notification. The letter provides the following instructions should they experience a "qualifying event:"
You and your covered dependents will be responsible for notifying our office of a divorce, legal separation, Medicare entitlement or when a dependent loses his/her "dependent status." You or your dependent have sixty days to notify our office of these qualifying events. If we are not notified within this time frame, COBRA continuation cannot be offered. In order to take advantage of the disability extension described below, you must also notify us within sixty days of a determination by Social Security that you or a dependent are "disabled."
This is another illustration of the importance of providing the Initial COBRA Notification to all covered dependents. Most employers will remember to send the notification with the addition of a new employee. But, many forget to send the notification if an employee gets married. Please review your procedures to verify you are sending notification when an employee is adding a spouse to his/her group plan.
The next question is, was the spouse dropped "in anticipation" of a qualifying event? This could be difficult for employers to determine so Ruling 2002-88 states "if no other evidence exists that a spouse otherwise would have lost coverage for non-divorce reasons, the spouse would have remained covered until the divorce and then lost coverage because of the divorce, thereby causing the divorce to become a qualifying event." In many situations, the employee may be dropping a spouse for reasons other than "divorce-related" issues. For this reason, you may wish to have a form asking for reasons as to why coverage is being dropped on family members. This will provide documentation if ever questioned by an uncovered spouse.
4) Q & A Section: Legal explanation of the duration of COBRA continuation coverage
Q-1: How long must COBRA
continuation coverage be made available to a qualified beneficiary?
A-1: (a) Except for an interruption of coverage in
connection with a waiver, as described in Q&A-4 of Sec. 54.4980B-6, COBRA
continuation coverage that has been elected for a qualified beneficiary must
extend for at least the period beginning on the date of the qualifying event
and ending not before the earliest of the following dates --
(1) The last day of the maximum coverage period (see Q&A-4 of this section);
(2) The first day for which timely payment is not made to the plan with respect to the qualified beneficiary
(3) The date upon which the employer or employee organization ceases to provide any group health plan (including successor plans) to any employee;
(4) The date, after the date of the election, upon which the qualified beneficiary first becomes covered under any other group health plan, as described in Q&A-2 of this section;
(5) The date, after the date of the election, upon which the qualified beneficiary first becomes entitled to Medicare benefits, as described in Q&A-3 of this section; and
(6) In the case of a qualified beneficiary entitled to a disability extension (see Q&A-5 of this section), the later of --(i) Either 29 months after the date of the qualifying event, or the first day of the month that is more than 30 days after the date of a final determination under Title II or XVI of the Social Security Act (42 U.S.C. 401-433 or 1381-1385) that the disabled qualified beneficiary whose disability resulted in the qualified beneficiary's being entitled to the disability extension is no longer disabled, whichever is earlier; or
(ii) The end of the maximum coverage period that applies to the qualified beneficiary without regard to the disability extension.
(b) However, a group health plan
can terminate for cause the coverage of a qualified beneficiary receiving
COBRA continuation
coverage on the same basis that the plan terminates for cause the coverage
of similarly situated nonCOBRA beneficiaries. For example, if a group health
plan terminates the coverage of active employees for the submission of a
fraudulent claim, then the coverage of a qualified beneficiary can also be
terminated for the submission of a fraudulent claim. Notwithstanding the
preceding two sentences, the coverage of a qualified beneficiary can be
terminated for failure to make timely payment to the plan only if payment is
not considered timely under COBRA payment guidelines.
(c) In the case of an individual who is not a qualified beneficiary and who is receiving coverage under a group health plan solely because of the individual's relationship to a qualified beneficiary, if the plan's obligation to make COBRA continuation coverage available to the qualified beneficiary ceases under this section, the plan is not obligated to make coverage available to the individual who is not a qualified beneficiary.
Q-2: When may a plan terminate a
qualified beneficiary's COBRA continuation coverage due to coverage under
another group health plan?
A-2: (a) If a qualified beneficiary first becomes covered
under another group health plan (including for this purpose any group health
plan of a governmental employer or employee organization) after the date on
which COBRA continuation coverage is elected for the qualified beneficiary
and the other coverage satisfies the requirements of paragraphs (b), (c),
and (d) of this Q&A-2, then the plan may terminate the qualified
beneficiary's COBRA continuation coverage upon the date on which the
qualified beneficiary first becomes covered under the other group health
plan (even if the other coverage is less valuable to the
qualified beneficiary). By contrast, if a qualified beneficiary first
becomes covered under another group health plan on or before the date on
which COBRA continuation coverage is elected, then the other coverage cannot
be a basis for terminating the qualified beneficiary's COBRA continuation
coverage.
(b) The requirement of this
paragraph (b) is satisfied if the qualified beneficiary is actually covered,
rather than merely eligible
to be covered, under the other group health plan.
(c) The requirement of this paragraph (c) is satisfied if the other group health plan is a plan that is not maintained by the employer or employee organization that maintains the plan under which COBRA continuation coverage must otherwise be made available.
(d) The requirement of this paragraph (d) is satisfied if the other group health plan does not contain any exclusion or limitation with respect to any preexisting condition of the qualified beneficiary (other than such an exclusion or limitation that does not apply to, or is satisfied by, the qualified beneficiary by reason of the provisions in section 9801 (relating to limitations on preexisting condition exclusion periods in group health plans)).
(e) The rules of this Q&A-2 are illustrated by the following examples:
Example 1. (i) Employer X maintains a group health plan subject to COBRA. C is an employee covered under the plan. C is also covered under a group health plan maintained by Employer Y, the employer of C 's spouse. C terminates employment (for reasons other than gross misconduct), and the termination of employment causes C to lose coverage under X 's plan (and, thus, is a qualifying event). C elects to receive COBRA continuation coverage under X 's plan.
(ii) Under these facts, X 's plan cannot terminate C 's COBRA continuation coverage on the basis of C 's coverage under Y 's plan.
Example 2. (i) Employer W maintains a group health plan subject to COBRA. D is an employee covered under the plan. D terminates employment (for reasons other than gross misconduct), and the termination of employment causes D to lose coverage under W 's plan (and, thus, is a qualifying event). D elects to receive COBRA continuation coverage under W 's plan. Later D becomes employed by Employer V and is covered under V's group health plan. D 's coverage under V 's plan is not subject to any exclusion or limitation with respect to any preexisting condition of D.
(ii) Under these facts, W can terminate D 's COBRA continuation coverage on the date D becomes covered under V 's plan.
Example 3. (i) The facts are the same as in Example 2, except that D becomes employed by V and becomes covered under V 's group health plan before D elects COBRA continuation coverage under W 's plan.
(ii) Because the termination of employment is a qualifying event, D must be offered COBRA continuation coverage under W 's plan, and W is not permitted to terminate D 's COBRA continuation coverage on account of D 's coverage under V 's plan because D first became covered under V 's plan before COBRA continuation coverage was elected for D.
Q-3: When may a plan terminate a
qualified beneficiary's COBRA continuation coverage due to the qualified
beneficiary's entitlement to Medicare benefits?
A-3: (a) If a qualified beneficiary first becomes
entitled to Medicare benefits under Title XVIII of the Social Security Act
(42
U.S.C. 1395-1395ggg) after the date on which COBRA continuation coverage is
elected for the qualified beneficiary, then the plan may terminate the
qualified beneficiary's COBRA continuation coverage upon the date on which
the qualified beneficiary becomes so entitled. By contrast, if a qualified
beneficiary first becomes entitled to Medicare benefits on or before the
date that COBRA continuation coverage is elected, then the qualified
beneficiary's entitlement to Medicare benefits cannot be a basis for
terminating the qualified beneficiary's COBRA continuation coverage.
(b) A qualified beneficiary becomes entitled to Medicare benefits upon the effective date of enrollment in either part A or B, whichever occurs earlier. Thus, merely being eligible to enroll in Medicare does not constitute being entitled to Medicare benefits.
Q-4: When does the maximum
coverage period end?
A-4: (a) Except as otherwise provided in this Q&A-4, the
maximum coverage period ends 36 months after the qualifying event. The
maximum coverage period for a qualified beneficiary who is a child born to
or placed for adoption with a covered employee during a period of COBRA
continuation coverage is the maximum coverage period for the qualifying
event giving rise to the period of COBRA continuation coverage during which
the child was born or placed for adoption. Paragraph (b) of this Q&A-4
describes the starting point from which the end of the maximum coverage
period is measured. The date that the maximum coverage period ends is
described in paragraph (c) of this Q&A-4 in a case where the qualifying
event is a termination of employment or reduction of hours of employment, in
paragraph (d) of this Q&A-4 in a case where a covered employee becomes
entitled to Medicare benefits under Title XVIII of the Social Security Act
(42 U.S.C. 1395-1395ggg) before experiencing a qualifying event that is a
termination of employment or reduction of hours of employment, and in
paragraph (e) of this Q&A-4 in the case of a qualifying event that is the
bankruptcy of the employer. See Q&A-6 of this section in the case of
multiple qualifying events.
(b)(1) The end of the maximum coverage period is measured from the date of
the qualifying event even if the qualifying event does not result in a loss
of coverage under the plan until a later date. If, however, coverage under
the plan is lost at a later date and the plan provides for the extension of
the required periods, then the maximum coverage period is measured from the
date when coverage is lost. A plan provides for the extension of the
required periods if it provides both--
(i) That the 30-day notice period (during which the employer is required to notify the plan administrator of the occurrence of certain qualifying events such as the death of the covered employee or the termination of employment or reduction of hours of employment of the covered employee) begins on the date of the loss of coverage rather than on the date of the qualifying event; and
(ii) That the end of the maximum coverage period is measured from the date of the loss of coverage rather than from the date of the qualifying event.
(2) In the case of a plan that provides for the extension of the required periods, whenever the rules refer to the measurement of a period from the date of the qualifying event, those rules apply in such a case by measuring the period instead from the date of the loss of coverage.
(c) In the case of a qualifying event that is a termination of employment or reduction of hours of employment, the maximum coverage period ends 18 months after the qualifying event if there is no disability extension, and 29 months after the qualifying event if there is a disability extension. See Q&A-5 of this section for rules to determine if there is a disability extension. If there is a disability extension and the disabled qualified beneficiary is later determined to no longer be disabled, then a plan may terminate the COBRA continuation coverage of an affected qualified beneficiary before the end of the disability extension; see paragraph (a)(6) in Q&A-1 of this section.
(d)(1) If a covered employee becomes entitled to Medicare benefits under Title XVIII of the Social Security Act (42 U.S.C. 1395-1395ggg) before experiencing a qualifying event that is a termination of employment or reduction of hours of employment, the maximum coverage period for qualified beneficiaries other than the covered employee ends on the later of--
(i) 36 months after the date the covered employee became entitled to Medicare benefits; or
(ii) 18 months (or 29 months, if there is a disability extension) after the date of the covered employee's termination of employment or reduction of hours of employment.
(2) See paragraph (b) of Q&A-3 of this section regarding the determination of when a covered employee becomes entitled to Medicare benefits.
(e) In the case of a qualifying event that is the bankruptcy of the employer, the maximum coverage period for a qualified beneficiary who is the retired covered employee ends on the date of the retired covered employee's death. The maximum coverage period for a qualified beneficiary who is the spouse, surviving spouse, or dependent child of the retired covered employee ends on the earlier of--
(1) The date of the qualified beneficiary's death; or
(2) The date that is 36 months after the death of the retired covered employee.
Q-5: How does a qualified
beneficiary become entitled to a disability extension?
A-5: (a) A qualified beneficiary becomes entitled to a
disability extension if the requirements of paragraphs (b), (c), and (d) of
this
Q&A-5 are satisfied with respect to the qualified beneficiary. If the
disability extension applies with respect to a qualifying event, it applies
with respect to each qualified beneficiary entitled to COBRA continuation
coverage because of that qualifying event. Thus, for example, the 29-month
maximum coverage period applies to each qualified beneficiary who is not
disabled as well as to the qualified beneficiary who is disabled, and it
applies independently with respect to each of the qualified beneficiaries.
(b) The requirement of this
paragraph (b) is satisfied if a qualifying event occurs that is a
termination, or reduction of hours, of
a covered employee's employment.
(c) The requirement of this
paragraph (c) is satisfied if an individual (whether or not the covered
employee) who is a qualified
beneficiary in connection with the qualifying event described in paragraph
(b) of this Q&A-5 is determined under Title II or XVI of the Social Security
Act (42 U.S.C. 401-433 or 1381-1385) to have been disabled at any time
during the first 60 days of COBRA continuation coverage. For this purpose,
the period of the first 60 days of COBRA continuation coverage is measured
from the date of the qualifying event described in paragraph (b) of this
Q&A-5 (except that if a loss of coverage would occur at a later date in the
absence of an election for COBRA continuation coverage and if the plan
provides for the extension of the required periods (as described in
paragraph (b) of Q&A-4 of this section) then the period of the first 60 days
of COBRA continuation coverage is measured from the date on which the
coverage would be lost). However, in the case of a qualified beneficiary who
is a child born to or placed for adoption with a covered employee during a
period of COBRA continuation coverage, the period of the first 60 days of
COBRA continuation coverage is measured from the date of birth or placement
for adoption. For purposes of this paragraph (c), an individual is
determined to be disabled within the first 60 days of COBRA continuation
coverage if the individual has been determined under Title II or XVI of the
Social Security Act to have been disabled before the first day of COBRA
continuation coverage and has not been determined to be no longer disabled
at any time between the date of that disability determination and the first
day of COBRA continuation coverage.
(d) The requirement of this paragraph (d) is satisfied if any of the qualified beneficiaries affected by the qualifying event described in paragraph (b) of this Q&A-5 provides notice to the plan administrator of the disability determination on a date that is both within 60 days after the date the determination is issued and before the end of the original 18-month maximum coverage period that applies to the qualifying event.
Q-6: Under what circumstances
can the maximum coverage period be expanded?
A-6: (a) The maximum coverage period can be expanded if
the requirements of Q&A-5 of this section (relating to the disability
extension) or paragraph (b) of this Q&A-6 are satisfied.
(b) The requirements of this
paragraph (b) are satisfied if a qualifying event that gives rise to an
18-month maximum coverage period (or a 29-month maximum coverage period in
the case of a disability extension) is followed, within that 18-month period
(or within that 29-month period, in the case of a disability extension), by
a second qualifying event (for example, a death or a divorce) that gives
rise to a 36-month maximum coverage period. (Thus, a termination of
employment following a qualifying event that is a reduction of hours of
employment cannot be a second qualifying event that expands the maximum
coverage period; the bankruptcy of an employer also cannot be a second
qualifying event that expands the maximum coverage period.) In such a case,
the original 18-month period (or 29-month period, in the case of a
disability extension) is expanded to 36 months, but only for those
individuals who were qualified beneficiaries under the group health plan in
connection with the first qualifying event and who are still qualified
beneficiaries at the time of the second qualifying event. No qualifying
event (other than a qualifying event that is the bankruptcy of the employer)
can give rise to a maximum coverage period that ends more than 36 months
after the date of the first qualifying event (or more than 36 months after
the date of the loss of coverage, in the case of a plan that provides for
the extension of the required periods; see paragraph (b) in Q&A-4 of this
section). For example, if an employee covered by a group health plan that is
subject to COBRA terminates employment (for reasons other than gross
misconduct) on December 31,
2000, the termination is a qualifying event giving rise to a maximum
coverage period that extends for 18 months to June 30, 2002. If the employee
dies after the employee and the employee's spouse and dependent children
have elected COBRA continuation coverage and on or before June 30, 2002, the
spouse and dependent children (except anyone among them whose COBRA
continuation coverage had already ended for some other reason) will be able
to receive COBRA continuation coverage through December 31, 2003.
Q-7: If health coverage is
provided to a qualified beneficiary after a qualifying event without regard
to COBRA continuation coverage
(for example, as a result of state or local law, the Uniformed Services
Employment and Reemployment Rights Act of 1994 (38 U.S.C. 4315), industry
practice, a collective bargaining agreement, severance agreement, or plan
procedure), will such alternative coverage extend the maximum coverage
period?
A-7: (a) No. The end of the maximum coverage period is
measured solely as described in Q&A-4 and Q&A-6 of this section, which is
generally from the date of the qualifying event.
(b) If the alternative coverage does not satisfy all the requirements for COBRA continuation coverage, or if the amount that the group health plan requires to be paid for the alternative coverage is greater than the amount required to be paid by similarly situated non-COBRA beneficiaries for the coverage that the qualified beneficiary can elect to receive as COBRA continuation coverage, the plan covering the qualified beneficiary immediately before the qualifying event must offer the qualified beneficiary receiving the alternative coverage the opportunity to elect COBRA continuation coverage.
(c) If an individual rejects COBRA continuation coverage in favor of alternative coverage, then, at the expiration of the alternative coverage period, the individual need not be offered a COBRA election. However, if the individual receiving alternative coverage is a covered employee and the spouse or a dependent child of the individual would lose that alternative coverage as a result of a qualifying event (such as the death of the covered employee), the spouse or dependent child must be given an opportunity to elect to continue that alternative coverage, with a maximum coverage period of 36 months measured from the date of that qualifying event.
Q-8: Must a qualified
beneficiary be given the right to enroll in a conversion health plan at the
end of the maximum coverage period for COBRA continuation coverage?
A-8: If a qualified beneficiary's COBRA continuation
coverage under a group health plan ends as a result of the expiration of the
maximum coverage period, the group health plan must, during the 180-day
period that ends on that expiration date, provide the qualified beneficiary
the option of enrolling under a conversion health plan if such an option is
otherwise generally available to similarly situated non-COBRA beneficiaries
under the group health plan. If such a conversion option is not otherwise
generally available, it need not be made available to qualified
beneficiaries.
03.01.2010
Source: COBRA Solutions, Inc. A software provider for the industry and human resource operations
Note: This information should not be construed as tax or legal advice. It is a guide. Decisions regarding COBRA should be reviewed with your advisors.