COBRA

Consolidated Omnibus Budget Reconciliation Act

Employee

Covered employees enrolled in a medical plan, dental plan, and/or the health care flexible spending account have a right to choose COBRA continuation coverage for the plan(s) they were enrolled in immediately prior to losing coverage for one of the following reasons: 

• Termination of employment (for reasons other than gross misconduct) – 18 months
• Reduction of work hours – 18 months
  

Dependent of a covered employee

A dependent of a covered employee enrolled in a medical plan, dental plan, and/or the health care flexible spending account has the right to choose COBRA continuation coverage for the plan(s) they were enrolled in immediately prior to losing coverage for one of the following reasons:

• Termination of covered employee – 18 months
• Reduction of covered employee's work hours – 18 months
• Death of employee – 36 months
• Divorce, legal separation, or termination of relationship – 36 months
• Employee becomes Medicare-eligible (dependent only) – 36 months
• Child loses eligibility – 36 months
  

COBRA Disability Extension

A qualified beneficiary under COBRA may be eligible for an additional 11 months of coverage (for a total of 29 months) if they:

• Were offered COBRA coverage due to the employee's termination of employment or reduction in hours;
• Are determined to be disabled by: 
  • The Social Security Administration
  • The employer's Long Term Disability Insurance carrier
  • PERA;
• Are disabled at any time during the first 60 days of COBRA continuation coverage
• Notify the plan administrator of the disability determination within 60 days of the date of the determination and before the end of the original 18-month period of COBRA continuation coverage.