Question:
If an employee quits his job, is the employee insurance good for 30 days, or is it terminated the day he quits? I understand COBRA laws, however, I am wondering how much time there is to make new arrangements, prior to having to pay for the COBRA plan.
Answer:
COBRA has the following notice requirements:
• Initial notice of COBRA rights must be furnished to employees and
their covered spouses within 90 days after becoming covered under
the plan. This notice is generally given in the form of a summary plan
description, or SPD, which we must by law provide to plan participants.
• Other notice requirements are triggered by a qualifying event. We
must notify plan administrators of a qualifying event within 30 days
after an employee’s termination or death, reduced hours of
employment, or entitlement to Medicare.
• A qualified beneficiary must notify the plan administrator within
60 days after divorce, legal separation, or a child’s ceasing to be
covered as a dependent under the rules of the plan. Qualified disabled
beneficiaries who wish to take advantage of a special extension of
coverage must notify the plan administrator of the disabled
beneficiary’s Social Security disability determination within 60 days
of the determination and before the original coverage period expires.
We’ll find out more about this special extension in a few minutes.
• Finally, the plan administrator must provide notice to qualified
beneficiaries informing them of their right to elect continuation of
coverage under COBRA within 14 days after the plan administrator
receives notice that a qualifying event has occurred. Through
December 31, 2009, the notice by the plan administrator must contain
additional information about the COBRA premium subsidy program. |
