COBRA Coverage

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Revision/Review Date Board Approval Date Effective Date

Policy

PIC will provide continued health insurance availability pursuant to the federal Consolidated Omnibus Budget Reconciliation Act (COBRA).

Practice

  1. In the event of an employee's termination of employment (except for gross misconduct) or loss of full-time status, the employee, spouse, and dependent children may be entitled by law to purchase continuing health care coverage under PIC’s group plan. If the employee or any family member is disabled, the disabled individual and non-disabled family members may be entitled to additional continuation coverage.
  1. In the event of an employee's death, divorce, or legal separation, or a retiree losing coverage under PIC’s group plan because of enrollment in Medicare, the spouse and dependent children of the employee or retiree may have the option of purchasing continuing coverage under PIC’s group health plan. If a dependent child loses coverage under PIC’s group health plan because he or she has reached the determined age, the child may be able to purchase continuing health care coverage under PIC’s group plan.
  1. Employees or qualified beneficiaries electing COBRA coverage are responsible for paying the cost of the extended health care coverage. 
  1. In order for PIC to meet its legal obligations in providing continuing health care coverage, all employees must inform HR within 60 days of a divorce or legal separation or when a dependent child reaches the age the coverage terminates. It also is essential that HR has a current address for all employees and family members.
  1. This policy will be interpreted in accordance with the Consolidated Omnibus Budget Reconciliation Act (COBRA) as amended and as interpreted by the courts.
  1. This policy statement is a brief description of the COBRA coverage and does not fully explain employees' rights. Employees should read the notice received when first enrolled in the group health plan or the Summary Plan Description for a full explanation. Copies may be obtained from HR.  If any part of this practice contradicts COBRA regulations, the official regulations will prevail.