COBRA
- What are COBRA benefits?
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COBRA (short for Consolidated Omnibus Budget Reconciliation Act of 1986) is a federal law that allows for continuation of coverage under an employer's group health plan to covered persons (called "qualified beneficiaries") in the event of a qualifying event.
- Who is a Qualified Beneficiary?
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A qualified beneficiary is an individual who, on the day before the qualifying event, is covered under the Plan either as an employee, enrollee's dependent spouse, or enrollee's dependent child. A qualified beneficiary is also a child born to the employee, or who is placed for adoption with the employee during a period of COBRA continuation coverage.
- What is a Qualifying Event?
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A qualifying event is an occurrence which, but for the continuation coverage available under the Plan, would result in the loss of coverage for a qualified beneficiary. Under COBRA, qualifying events include the loss of coverage that otherwise would result due to:
- Termination of employment, for reasons other than gross misconduct
- Reduction in hours of employment
- Death of the enrollee
- Divorce or legal separation
- Entitlement to Medicare
- Loss of dependent eligibility