Terminating the Employment Relationship

2. Q UALIFYING E VENTS There are several qualifying events that trigger an employer’s obligation to issue a COBRA notice. For purposes of this workbook, termination is included in the list of qualifying events. However, as discussed below, termination for gross misconduct can disqualify an employee. The following is a non- exhaustive list of “qualifying events”:

Death of an employee (notification to covered dependents);

End of employment relationship causing a discontinuation in benefits (notification to ex-employee and covered dependents); Reduction in an employee’s hours making the employee ineligible for the employer’s health plan (not ification to employee and covered dependents);

Employee divorce (notification sent to spouse);

A dependent of an employee is no longer considered a dependent (Notification to former dependent); and Family member(s) of an employee enrolls in Medicare (notification to family member). 3. COBRA C OVERAGE P ERIOD COBRA generally provides a continuation of benefits for up to 18 months for qualifying events due to employment termination or reduction of hours of work. However, a particular plan may provide longer periods of coverage beyond those required by COBRA. Certain qualifying events, or a second qualifying event during an initial coverage period, may entitle beneficiaries to an extension of up to an additional 18 months.

Cal-COBRA is also available to extend continuation coverage that has ended under the federal COBRA program, for up to an additional 18 months.

4. COBRA P AYMENT O BLIGATIONS The only obligation belonging to employers under COBRA is providing the employee with notice of his right to obtain c ontinuing health benefits coverage. It is the employee’s responsibility to apply for COBRA continuation coverage and pay COBRA premiums. Nothing prohibits an employer from agreeing to pay the employee’s COBRA costs (e.g., under settlement agreement).

Terminating the Employment Relationship ©2022 (s) Liebert Cassidy Whitmore 132