OVERVIEW OF COBRA

1. Eligibility - You are eligible to continue your coverage based upon your qualifying event. Any dependents who were enrolled on your plan on the day prior to the qualifying event also have the independent right to continue their coverage.
2. COBRA Acceptance/Enrollment - You have sixty (60) days to accept COBRA continuation coverage. Remember you do not have benefits during the sixty (60) day election period. If you elect to continue coverage, your insurance will be retroactively placed back into effect and any eligible claims occurring during this time frame will be covered. Any person or organization may elect COBRA for you and make premium payments on your behalf.
3. Failure to Notify - If you fail to notify your former employer of your desire to elect COBRA, you will not be able to continue your group coverage.
4. Length of Coverage - You are initially offered eighteen (18) months of COBRA continuation coverage.
5. Extended Coverage - A dependent may increase their COBRA continuation coverage to thirty-six (36) months because of another or "multiple" qualifying event, such as:
   1. Former employee becomes entitled to Medicare;
   2. Death of former employee;
   3. Divorce/Legal separation; or
   4. Dependent child loses dependent status under a plan's group contract.
6. Premium Costs - Your cost for continuation coverage is based upon the current premiums charged for similarly active employees with similar coverage. Premiums reflect to total cost of group health coverage, including both the portion paid by the employee as well as the former employer, plus 2% for administrative costs.
7. Premium Payment - The COBRA law provides a forty-five (45) days grace period (beginning on the date you inform your former employer of your desire to continue coverage) for the initial premium payments. Subsequent premium payments will have a thirty-one (31) days grace period. If your premium payment is not delivered or post marked within the grace period, your coverage will be terminated back to the last day for which your former employer received a full premium payment.

* This is a general overview of COBRA rules. For more in-depth information, contact us.