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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.