last update 10-27-97

Insurance Continuation with COBRA

COBRA stands for the Consolidated Omnibus Budget Reconciliation ACt of 1985. From a practical standpoint, it is to provide temporary continuation of health insurance coverage at group rates when benefits would otherwise be terminated.

First, only employers with fewer than 20 employees are not required to provide COBRA benefits. If your employer had less than 20 employees on at least 50 percent of the working days of the preceding calendar year, your employer is not required to offer terminating employees with the insurance benefits. If the number of employees in the current year fall below the 20 level, he will still be required to provide the coverage if he met the test for the prior calendar year.

Second, the employer is only obligated if it sponsored a group health plan. If your employer does not contribute to the plan, if your participation in the plan is voluntary, if your employer's role is limited to informing employees of the plan and handling premiums and if your employer does not receive any compensation for sponsoring the plan, it is unlikely that the plan is an employee welfare beneifty plan covered by COBRA.

This page does not attempt to include definitions of qualified beneficiaries, whether prior spouses and/or dependents are to be covered or any further data than is presented above. Its only purpose is to present the two basic rules set forth above. If you meet those requirements, then you need to check further as to what benefits may be provided.


========================  WARNING  =======================
                      AND DISCLAIMER
This information is provided for the reader's benefit in
becoming familiar with the legal matters discussed.  Your
particular facts may be different from the points above.
You should not rely on the above data without consulting a 
attorney to discuss the specific facts of your case
and the law of your state.
==========================================================

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last update 10-27-97

Insurance Continuation with COBRA

COBRA stands for the Consolidated Omnibus Budget Reconciliation ACt of 1985. From a practical standpoint, it is to provide temporary continuation of health insurance coverage at group rates when benefits would otherwise be terminated.

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