LEGAL NOTICES
COBRA
Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)
The right to COBRA continuation coverage was created by federal law, so that you and your covered dependents
may continue your employer-sponsored benefits coverage at full cost (plus an administrative fee). After a qualifying
event, COBRA continuation coverage must be offered to each qualified beneficiary. You, your spouse and your
dependent children could become qualified beneficiaries if coverage under the Plan is lost as a result of a
qualifying event. If you’re an employee, you’ll become a qualified beneficiary if you lose your coverage for either of
these reasons: • Your hours of employment are reduced • Your employment ends for any reason other than your gross misconduct
If you’re the spouse/dependent of a Private Prep employee, you’ll become a qualified beneficiary if you lose your
coverage under the Plan for any of these reasons:
• Your spouse/parent dies • Your spouse’s/parent’s hours of employment are reduced • Your spouse’s/parent’s employment ends for reasons other than his or her gross misconduct • Your spouse/parent is retired and becomes entitled to Medicare benefits • You are divorced or legally separated from your spouse • Child is no longer eligible for coverage under the Plan as a dependent child
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PRIVATE PREP BENEFITS GUIDE
LEGAL NOTICES
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