Articles
COBRA Qualifying Events
What specific events (“triggering events”) can be Qualifying Events? Death of the covered employee; Voluntary or involuntary termination of the covered employee’s employment other than by reason of gross misconduct (note ...
When must the initial notice be sent to covered employees and spouses?
Group health plans must give each employee and each spouse of an employee who becomes covered under then plan a general notice describing COBRA rights. The general notice must be provided within the first 90 days of coverage. The Depar...
What are the premium payment deadlines regarding COBRA coverage?
A plan may not require any payment until 45 days after the qualified beneficiary’s initial election. If a qualified beneficiary fails to make the initial premium payment within the 45-day period, the plan administrator may terminate the COBRA ...
How does COBRA continuation coverage requirements apply to Cafeteria Plans and other Flexible Benefit arrangements?
The provision of medical care through a cafeteria plan (as defined in Section 125) or other flexible benefit arrangement constitutes a group health plan. However, the COBRA continuation coverage requirements of section 162(k) apply to those medical ...
Who is entitled to COBRA Coverage?
Employers and plan administrators should know who is entitled to COBRA coverage. Problems can arise if COBRA is not offered to someone who is eligible or if it is offered to a person who is not eligible to elect COBRA coverage. Under the...
What are Qualifying Events?
“Qualifying events” are events that case an individual to lose group health coverage. The type of qualifying event determines who the qualified beneficiaries are for that event and the period of time that a plan must offer continua...
What plans are subject to COBRA?
Virtually all group health plans maintained by employers for their employees are subject to COBRA’s provisions, including group health plans of corporations, partnerships, tax exempt organizations, state and local governments. This also includ...
What triggers the obligation to offer COBRA coverage?
COBRA laws require employers to offer a COBRA election to qualified beneficiaries when there is: (1) a triggering event; and (2) the triggering event causes (or will cause) a loss in plan coverage that occurs within the maximum coverage period...
What is the purpose of the Initial COBRA Notice?
The statute requires the “group health plan” to provide notice. The definition of group health plan, however, does not identify any particular party. Most commentators have assumed that the plan administrator has the obligation to provid...
Does each Qualified Beneficiary have independent election rights under COBRA?
COBRA requires that “each” qualified beneficiary be entitled to elect COBRA coverage. If there is a choice among types of coverage under the plan, each qualified beneficiary is entitled to make a separate election among the different typ...