This notice explains your rights under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a federal law that may allow you to temporarily continue your health coverage if you lose it due to certain life events (called "qualifying events").
What is COBRA?
COBRA gives you and your qualified beneficiaries the right to elect to continue your group health plan coverage for a limited time if a qualifying event causes you to lose coverage.
Who Qualifies for COBRA?
If you’re the employee , you’ll become a qualified beneficiary if you, as the primary benefit holder, lose your coverage under the Plan as a result of one of the following qualifying events (these events would also impact coverage for your dependents):
- Your hours of employment are reduced, or
- Your employment ends for any reason other than your gross misconduct.
If you’re the spouse of an employee, you’ll become a qualified beneficiary and may elect COBRA if you lose your coverage under the Plan as a result of one of the following qualifying events:
- Your spouse (the primary benefit holder) dies;
- Your spouse’s hours of employment are reduced;
- Your spouse’s employment ends for any reason other than his or her gross misconduct;
- Your spouse becomes entitled to Medicare benefits (under Part A, Part B, or both); or
- You become divorced or legally separated from your spouse
Your dependent children will become qualified beneficiaries if they lose coverage under the Plan because of the following qualifying events (where the parent-employee is the primary benefit holder):
- The parent-employee dies; -
The parent-employee’s hours of employment are reduced;
- The parent-employee’s employment ends for any reason other than his or - her gross misconduct;
- The parent-employee becomes entitled to Medicare benefits (Part A, Part B, or both); - The parents become divorced or legally separated; or
- The child stops being eligible for coverage under the Plan as a “dependent child.”
How Long Does COBRA Last?
Standard Coverage: Up to 18 months
Extended Coverage: Up to 36 months for certain qualifying events (e.g., divorce, death, Medicare entitlement of the covered employee)
Disability Extension: Up to 29 months if a qualified beneficiary is deemed disabled
Under USERRA and COBRA rules, a military reservist who is called to active duty may choose COBRA continuation for up to 24 months. This should be discussed in detail with your employer
What Happens if a Qualifying Event Occurs?
Notification: If a qualifying event occurs, you or your employer must notify the Plan Administrator within 60 days of the event. Election Notice: Once the Plan Administrator is notified, you will receive a COBRA election notice with instructions on how to enroll in COBRA coverage and information about the cost of coverage.
Alternatives to COBRA:
Special Enrollment Period: A qualifying event allows you to enroll in a health plan through the Health Insurance Marketplace (HealthCare.gov) outside of the annual open enrollment period. You may be eligible for subsidies to help lower your costs. Other Coverage: You may be eligible for coverage through a spouse's employer, Medicaid, or other government programs. State Continuation: Some states offer continuation coverage after COBRA ends. Mini COBRA: In some circumstances, small employers may be required to offer continuation of health coverage, similar to Federal COBRA, but for a shorter period. Conversion: You may be able to convert your group health coverage to an individual policy.
Important Notes: COBRA coverage can be expensive, so it's essential to compare your options carefully. This is a general overview of COBRA rights. More detailed information will be provided in your COBRA election notice if you experience a qualifying event. If the covered employee becomes entitled to Medicare, COBRA coverage may end for dependents, but other coverage options may be available. COBRA coverage is offered to all qualified beneficiaries without discrimination on the basis of race, color, national origin, disability, age, sex, gender identity, or sexual orientation.
Clarity Benefit Solutions: 888-423-6359 or visit claritybenefitsolutions.com
