 Posted: Sun Aug 21, 2011 8:31 am Post subject: |
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| Quote: | | Few circumstances that are considered include; job loss, in-between jobs period, death, divorce etc. |
There are SIX "qualifying events". The first two apply to the employees and extend to their dependents, the last four only extend to dependents.
1) Voluntary or involuntary termination of employment for any reason other than gross misconduct.
2) Reduction in scheduled work hours below the minimum required for eligibility.
3) Employee's eligibility for (and election of) Medicare.
4) Death of the employee.
5) Divorce or legal separation from the employee.
6) A child not eligible for group health insurance through their own employment who turns age 26,
Under events 1 and 2, the continuation period is a minimum 18 months. Under events 3 through 6, the continuation period is a minimum of 36 months. The employer is free to offer a longer period of continuation, but most do not. The covered persons will pay 100% of the cost of the coverage, and may be charged up to 2% additional for the employer's "administrative expense".
Continuation must be elected and the first premium paid within 60 days of the qualifying event. Continuation coverage terminates at the earliest of these events: eligibility for another group health plan, expiration of the continuation period, failure to pay a premium when due.
A "child" no longer is disqualified from group coverage or COBRA continuation by reason of marriage, and they are not required to live at home or be a student after age 18. They are only cut loose at age 26, and will then have up to three more years of group coverage under the provisions of COBRA 1985.
Those free passes to 26 year old couch potatoes are courtesy of the Patient Protection and Affordable Care Act. At least until demolished by Congress or the courts.
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MaxHerr
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