The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 was enacted to give employee’s and/or their dependents the right to continue their medical, dental, or vision insurance for a limited amount of time after a Qualifying Event. The term COBRA applies to groups of 20 employees or more while another program, State Continuation, was enacted by individual states to offer the same protection to employer groups with less than 20 employees.
COBRA Qualifying Events
- Termination of employment (voluntary or involuntary) — for reasons other than gross misconduct
- Reduction in hours of employment
- Divorce or legal separation
- Loss of dependent child status
- Death of the covered employee
- Covered employee’s entitlement to Medicare
Employees, or their dependents, that choose to continue their coverage do so at their own expense and they have strict time limits in which to make their decisions. If electing to keep the coverage you will need to check with your state law to find out how long you will be able to keep the coverage in effect.
Quest provides COBRA administration services to their clients at no cost to ensure they are in compliance with applicable laws regarding COBRA and State Continuation.