Page 55 - 2022 AEO Benefit Guide

COBRA

The federal law, COBRA, requires that AEO offer you and your dependents the
opportunity to purchase a temporary continuation of your group health cover-
age in the following circumstances, when eligibility would otherwise end as
described below.

For an employee because:
• of a termination of employment for reasons
other than gross misconduct on the part of the Associate

For a spouse or dependent child because:
• of the death of the Associate
• of the termination of the Associate’s eligibility
• of divorce, child’s parents’ divorce,
or legal separation from the Associate
• the dependent child ceases to meet the eligibility
requirements for a dependent child
When any of these events occur, active AEO coverage will end on the
last day of the pay period in which the event took place. Complete
details are sent by Health Equity / WageWorks, AEO’s COBRA Adminis-
trator, to the Associate or dependents, explaining how coverage may be
continued including the amount that must be paid. You will have 60 days
to elect to continue coverage under COBRA and 45 days to make payment.
Any person who elects to continue coverage under the plan must pay the full
cost of that coverage (including both the share you pay now and the share your
employer pays now) plus 2%, the allowable administrative charges.

Please examine your options carefully before declining this coverage. You can also
explore other medical coverage options that may be available through the federal
or state marketplaces, where applicable. Loss of coverage generally is a “qualifying
event” that provides access to the marketplace and retail insurance offerings.

The maximum period of COBRA provided by law is as follows:
• 18 months if ineligibility is due to the Associate’s reduction in hours or
termination of employment. Any qualified beneficiary determined to be
disabled at the time of such a qualifying event, under the Social Security
Act’s provisions defining disabilities, may be entitled to coverage for NOTICES
29 months from the original qualifying event.
• 36 months for all other situations.

COBRA ADMINISTRATOR

Health Equity / WageWorks
1.877.722.2667
https://mybenefits.wageworks.com

FULL TIME BENEFITS — NOTICES 53