COBRA

In accordance with Federal law, most employers sponsoring group medical/dental plans* are required to offer employees and their families the opportunity for temporary extension of medical/dental coverage ( called "continuation coverage") at group rates in certain instances where coverage under the plan would otherwise end. This notice is intended to inform you, in a summary fashion, of your rights and obligations under the continuation coverage provisions of the law.

As an employee of this company you have the right to choose this continuation coverage if you lose your group medical/dental coverage* because of a reduction in your hours of employment or the termination of your employment (for any reason other than gross misconduct on your part).

If you are the spouse or dependent child of an employee, you have the right to choose continuation coverage under the company's group medical/dental insurance plan.*

Under the law, the employee or family member (to include divorced spouse or dependent child) has the responsibility to inform the company's plan administrator of a divorce, legal separation or a child losing dependent status under the company's group medical/dental insurance plan.*

The company has the responsibility to notify the plan administrator of the employee's death, termination of employment or reduction in hours or Medicare entitlement.

When the plan administrator is notified that one of these events has happened, the plan administrator will in turn notify you that you have the right to choose continuation coverage. Under the law, you have at least 60 days from the date you would lose coverage because of the events described above to inform the plan administrator that you want continuation coverage.

If you do not choose continuation coverage, your group medical/dental insurance* coverage will end.

If you choose continuation coverage, our company is required to give you coverage which, as of the time coverage is being provided, is identical to the coverage provided under the plan to similarly situated employees or family members. The law requires that you be afforded the opportunity to maintain continuation coverage for 36 months unless you lost group medical/dental coverage* because of termination of employment or reduction in hours. In that case, the required continuation coverage period is 18 months. However, the law also provides that your continuation coverage may be cut short for other reasons. (See the office manager or payroll supervisor for details.)

Under the law, you may have to pay part or all of the premium for your continuation coverage. The law also says that, at the end of the 18-month or 36-month continuation coverage period, you must be allowed to enroll in an individual conversion medical plan provided under the company medical insurance plan. (This does not apply to dental insurance plans.)

 

Additional information regarding coverage and cost as well as a complete copy of the COBRA law may be obtained from the office manager or payroll supervisor.

·          COBRA applies to dental insurance only if dental insurance is offered.