June 8, 2001

According to the MGH Benefits Office, COBRA is a valuable benefit that allows employees and their dependents to continue insurance coverage when they lose their benefits or are no longer eligible for benefits.

COBRA — which is the Consolidated Omnibus Budget Reconciliation Act, a federal law passed in 1985 — can serve as an important bridge between health plans for qualified employees, their spouses and their dependent children when their health benefits might be inactive due to a change in work or family status. For example, COBRA can be an option when an employee's child graduates from college and still needs some kind of health insurance coverage.

COBRA applies to employees when eligibility status changes because of one of the following:

• Reduction of work hours (less than 20 per week)
• Change of employee status (i.e. permanent to per diem or Bulfinch Temp)
• Divorce or legal separation
• Termination of employment
• Employee death (to offer coverage to surviving family members)
• Employee entitlement to Medicare benefits
• Loss of status as an eligible dependent

To continue coverage or to continue a dependent's coverage, employees will pay up to 102 percent of the premium cost. The period of COBRA coverage begins with the date of a qualifying event such as death, divorce, reduction of work hours or job termination. In most cases, thecoverage continues for up to 18 months from that qualifying event.

For more information about COBRA, MGHers can contact their Human Resources generalist.