CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 1985 (COBRA)

The consolidated Ominibus Budget Reconciliation Act of 1985 (COBRA) requires that your group plan allow qualified persons to continue group health coverage after it would otherwise end. The term "group health coverage" includes any medical, dental, vision and prescription drug coverages that are included in the group health plan. COBRA applies to any company that employed 20 or more employees for 50% of the prior year.  The following are the major provisions of the act:

QUALIFIED PERSONS/QUALIFYING EVENTS

MAXIMUM CONTINUATION PERIOD

SECOND QUALIFYING EVENTS

DISABLED EXTENTION

TERMINATION OF COBRA CONTINUATION

EMPLOYER/PLAN ADMINISTRATOR NOTICE REQUIREMENTS

QUALIFIED PERSON NOTICE AND ELECTION REQUIREMENTS

MONTHLY COST

GRACE PERIOD

PLAN CHANGES

NEWLY ACQUIRED DEPENDENTS

INDIVIDUAL PURCHASE (CONVERSION)

PLAN ADMINISTRATOR CONTACT INFORMATION

Please contact us for a more comprehensive summary.

For commonly asked questions go to  www.dol.gov/ebsa/FAQs/faq_compliance_cobra.html  

For general information go to www.dol.gov/dol/topic/health-plans/cobra.htm

For the actual language go to www.dol.gov/ebsa/pdf/cobra99.pdf 

For final regs go to www.lexisnexis.com/practiceareas/immigration/pdfs/web571.pdf