COBRA NOTICE
COBRA
Consolidated Omnibus Budget Reconciliation Act (COBRA) provides terminated employees and their covered dependents the opportunity for a temporary extension of health coverage at group rates (plus 2% service fee) in certain instances where coverage under the plan would otherwise end. You and your covered dependents have the right to choose continuation coverage if group health coverage is lost under the health plan for any of the following reasons: (1) death of the employee; (2) a termination of the employee’s employment (for reasons other than gross misconduct) or a reduction in the employee’s hours of employment; (3) divorce or legal separation from employee; (4) employee becomes entitled to Medicare; or (5) the dependent child ceases to be a “dependent child” by definition under the plan. Under the law, you or the covered dependent has the responsibility to inform us, as the employer, within 30 days of a qualifying event such as divorce, legal separation, or a child losing dependent status under the plan. We, as the employer, have the responsibility to notify you and your covered dependents of the right to continue coverage should coverage end due to death, employment termination, reduction in hours of employment, or Medicare entitlement.
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