COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985)

When group health coverage ends, PMHCC allows certain individuals to continue their health coverage through COBRA. COBRA is a health benefit provision, regulated by the Department of Labor (DOL) that allows the right to temporary continuation of health coverage when coverage is lost.

The DOL defines the circumstances in which coverage is lost and COBRA should be offered as "Qualifying Events." Qualifying Events could include voluntary or involuntary termination, no longer being eligible for insurance (i.e. reduction of hours), or in the case of a dependent, divorce from a spouse or a child aging out of a plan. When you or your dependent has a Qualifying Event, information is sent to you (and/or your dependent) by the COBRA administrator.

Once you elect COBRA, you will be billed for the premium. COBRA regulations state that the cost for COBRA cannot exceed 102% of the total cost of the benefit ("total cost" meaning employer portion + employee portion + 2% for administrative costs).

For more information about COBRA coverage, you may click on the link below which will take you to the Department of Labor’s website, specifically, "FAQs about COBRA Continuation Health Coverage."

Click here for COBRA FAQs

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