Qualifications For COBRA Coverage

QUALIFIED BENEFICIARIES:

____ 1. An employee covered under an employer's group health plan is a qualified beneficiary only in situations where the qualifying event is a termination (other than a termination for gross misconduct) or a reduction in working hours.

____ 2. An individual is a qualified beneficiary if, on the day before a qualifying event, that person is covered under the employer's plan and is the spouse or a dependent child of a covered employee.

____ 3. Retirees, independent contractors, corporate directors and members of a partnership are considered covered employees if they are covered under a group health plan on the day before a qualifying event.

QUALIFYING EVENTS: Qualified beneficiaries who lose coverage under a group health plan as the result of a qualifying event are entitled to elect continuation coverage. Qualifying events are specified events that would cause the qualified beneficiary to lose health coverage.

Qualifying events that affect covered employees are:

____ 1. Voluntary or involuntary terminations of employment for any reason other than gross misconduct.

____ 2. Reduction in the number of hours of employment.

____ 3. Failure to return to work following FMLA leave.

Qualifying events impacting spouses are:

____ 1. Death of the covered employee.

____ 2. Voluntary or involuntary termination of the covered employee's employment for any reason other than gross misconduct.

____ 3. Reduction in the covered employee's hours of employment.

____ 4. Divorce or legal separation from the covered employee.

____ 5. The covered employee becoming eligible for Medicare.

____ 6. The employee's failure to return to work following FMLA leave.

Qualifying events affecting dependent children are:

____ 1. Death of the covered employee.

____ 2. Voluntary or involuntary termination of the covered employee's employment for any reason other than gross misconduct.

____ 3. Reduction in the covered employee's hours of employment.

____ 4. Divorce or legal separation of the covered employee.

____ 5. Entitlement to Medicare for the covered employee.

____ 6. Loss of dependent child status under the plan rules.

____ 7. The employee's failure to return to work following FMLA leave.

Special bankruptcy rule for retirees. An employer's filing for Chapter 11 bankruptcy is a qualifying event for covered retired employees, their spouses (or surviving spouses) and dependent children.