COBRA
What Are Cobra Benefits
Cobra (short for Consolidated Omnibus Budget Reconciliation Act of 1986) is a federal law that allows for continuation of coverage under an employer's group health plan to covered persons (called "qualified beneficiaries") in the event of a qualifying event.
Who is a Qualified Beneficiary?
A qualified beneficiary is an individual who, on the day before the qualifying event, is covered under the Plan either as an employee, enrollee's dependent spouse, or enrollee's dependent child. A qualified beneficiary is also a child born to the employee, or who is placed for adoption with the employee during a period of COBRA continuation coverage.
What is a Qualifying Event?
A qualifying event is an occurrence which, but for the continuation coverage available under the Plan, would result in the loss of coverage for a qualified beneficiary. Under COBRA, qualifying events include the loss of coverage that otherwise would result due to:
- Termination of employment, for reasons other than gross misconduct
- Reduction in hours of employment
- Death of the enrollee
- Divorce or legal separation
- Entitlement to Medicare
- Loss of dependent eligibility
Cobra Continuation Coverage Checklist
- A Cobra election form must be completed and returned to Blue Cross Blue Shield within 60 days of the date coverage ended or the date of the notice, whichever is later.
- The first premium payment must be made within 45 days from the date of election to continue coverage.
- The first payment must include all premiums due for the coverage period beginning with the COBRA coverage effective date through the current month.