If you work for a company that has 20 employees or more, then you have basic Federal rights that cover you if you lose your employment with them. Also, in some states, there are expansive programs that extend certain COBRA rights to workers even if the company has fewer than 20 employees.
Normally, you are covered when there is a “triggering” or qualifying event. This could be if you are voluntarily or involuntarily laid off or terminated, unless you are terminated for gross misconduct. If your hours are reduced below the plan eligibility requirements, you may also have certain rights. In the event that you should pass away, or by age or disability qualify for Medicare, you may also have rights which continue. Other situations are if your dependent is no longer eligible because of age or non-student status or if your spouse is no longer eligible because of a divorce or legal separation.
Each plan should be reviewed individually upon a separation or a triggering event to determine what rights you have, as very often an election has to be made within certain time limitations, and it could be lost if not elected timely. Even if an election is made upon termination to continue the coverage, you should review the cost of coverage, as it will usually be significantly more than when you were employed.
Similarly, benefits such as life insurance should be reviewed because they normally become quite expensive upon termination, but if life expectancy is an issue, you should consider the cost versus potential death benefit.
The cost of COBRA “non-compliance” is quite high, and therefore, employees should be certain that they verify the rules when notified properly by their employers.
by: Hyman G. Darling, Esq.
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