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2017 EXPAT BENEFITS

GUIDE

14

An Overview of COBRA Coverage

The chart below summarizes individuals eligible for COBRA coverage (known as qualified beneficiaries), the

life events that qualify them for coverage, and related coverage periods:

Qualifying Event

Qualified Beneficiary

Coverage Period

– Employee’s/spouse’s hours of employment are

reduced

– Employee’s/spouse’s employment ends for any

reason other than gross misconduct

Employee

Spouse

Dependent child

18 months

– Employee entitled to Medicare (under Part A,

Part B or both)

– Divorce or legal separation

– Death of employee

Spouse

Dependent child

36 months

– Spouse entitled to Medicare (under Part A,

Part B or both)

– Death of spouse

Dependent child

36 months

– Loss of dependent child status

Dependent child

36 months

– Company declares Chapter 11 bankruptcy

which results in loss of group health coverage

Retiree

Retiree’s spouse

Retiree’s dependent child

36 months

Extension of Coverage

The 18-month coverage period may be extended under the following circumstances:

Event

Disability

– If the Social Security Administration determines that the qualified beneficiary was disabled on the date of the

qualifying event according to Title II (Old Age Survivors and Disability Insurance) or XVI (Supplemental Security

Income) of the Social Security Act, the 18-month coverage period will be extended to 29 months.

– The qualified beneficiary must obtain the disability determination from the Social Security Administration and notify

the Plan Administrator within 60 days of the date of disability determination and before the close of the initial

18-month period. The qualified beneficiary has 30 days to notify the Plan Administrator from the date of a final

determination that he or she is no longer disabled.

Secondary

Event

– If during the 18 months of continuation coverage, a second event takes place (divorce, legal separation, death,

Medicare entitlement or a dependent child ceasing to be a dependent), the 18-month coverage period will be

extended to 36 months. The qualified beneficiary must notify the Plan Administrator within 60 days of the event and

within the initial 18-month period. COBRA coverage does not last beyond 36 months from the original qualifying

event, no matter how many events occur.

If you elect to continue a Flexible Spending Account through COBRA, the maximum period for continuation

coverage is through the end of the calendar year, on an after-tax basis.