COBRA - Continuation of Coverage

Federal COBRA legislation establishes continuation of coverage rights for "qualified beneficiaries," individuals who may continue to receive health benefits through an employer-sponsored plan. NHADA makes COBRA eligible to all participating NHADA member groups and administers COBRA, at no charge to the group, for qualified beneficiaries enrolled in NHADA-sponsored Medical, Dental, and Vision products.

The types of qualifying events and periods of coverage for employees are:

  • Voluntary or involuntary termination of employment for reasons other than "gross misconduct" (18 months)*
  • Reduction in the number of hours of employment (18 months)*

The types of qualifying events and periods of coverage for a spouse are:

  • Termination of the covered employee's employment for any reason other than "gross misconduct" (18 months)*
  • Reduction in the hours worked by the covered employee (18 months)*
  • Covered employee becoming entitled to Medicare (36 months)
  • Divorce or legal separation of the covered employee (36 months)
  • Death of a covered employee (36 months)

The types of qualifying events and periods of coverage for a dependent child are:

  • Termination of covered employee's employment for any reason other than "gross misconduct" (18 months)
  • Reduction in the hours worked by the covered employee (18 months)
  • Loss of "dependent child" status under the plan rules (36 months)
  • Covered employee becoming entitled to Medicare (36 months)
  • Divorce or legal separation of the covered employee (36 months)
  • Death of a covered employee (36 months)

*In the case of the individuals who qualify for Social Security disability benefits, special rules apply to extend 18-month coverage up to an additional 11 months.

Note: This information is a summary and is strictly the interpretation of NHADA.