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2017 EXPAT BENEFITS
GUIDE
15
Providing Notification of a Qualifying Event
COBRA coverage is offered to a qualified
beneficiary after the Plan Administrator has been
notified of a qualifying event. The employer must
notify the Plan Administrator within 30 days after
the following qualifying events: an employee’s
death, termination of employment, reduction in
hours or eligibility for Medicare, and the loss
of retiree coverage resulting from a bankruptcy
ruling. You must notify your employer or the Plan
Administrator within 60 days of the following
qualifying events: your divorce or legal separation
or if your child loses dependent status under
the Plan.
Electing COBRA Coverage
Once notified, the Plan Administrator will inform
qualified beneficiaries of their right to elect COBRA
coverage. The employee and spouse may elect
COBRA coverage independent of one another.
Employees may elect COBRA coverage on behalf
of their spouses, and parents may elect COBRA
coverage on behalf of their children. The election
period is 60 days, which begins from the date
Plan coverage ends or the date of the notice,
whichever is later. There is no extension of the
election period. If coverage is not elected within
this 60-day period, then rights to continue group
health insurance will end.
Paying for COBRA
You pay the full cost of COBRA coverage (plus a
2 percent administration fee), which is 102% of the
total premium. There is a grace period of at least
30 days for payment of the regularly scheduled
premium. At the end of the 18-month, 29-month or
36-month continuation coverage period, qualified
beneficiaries may be offered, if available on the
group health plan, the opportunity to enroll in an
individual conversion health plan provided by
your employer.
Updating Information on Qualified
Beneficiaries
You must inform the Plan Administrator of any
changes regarding qualified beneficiaries, such as:
•
Changes of addresses of family members, and
•
Birth to or adoption of a child by the covered
employee during a period of COBRA coverage.
According to the terms of the Plan and federal
law, the child can be added to COBRA
coverage as a qualified beneficiary upon
proper notification to your employer or
COBRA Plan Administrator.
For your records, be sure to keep a copy of any
notices you send to the Plan Administrator.
Cancellation of COBRA Coverage
Under federal law, COBRA coverage may be
cancelled for any of the following reasons:
•
Your employer no longer provides group health
coverage to any of its employees,
•
The premium for continuation coverage is not
paid on time,
•
The qualified beneficiary becomes covered,
after the date he or she elects COBRA coverage,
under another group health plan that does not
contain any exclusion or limitation with respect
to any pre-existing condition,
•
The employee or spouse becomes entitled
to Medicare, after the date he
or she elects COBRA coverage,
•
The qualified beneficiary
extends coverage to 29 months
due to a Social Security
disability and a final
determination has been made
that he or she is no longer
disabled, and
•
The qualified beneficiary
notifies the Plan Administrator
that they wish to cancel
continuation coverage.