Page 26 - Jones and Frank Benefits Enrollments Guide

• The death of your spouse.
• A termination of your spouse’s employment (for reasons other than gross misconduct) or
reduction in your spouse’s hours of employment.
• Divorce or legal separation from your spouse.
• Your spouse becomes entitled to Medicare.

In the case of dependent children of an employee covered by the group healthcare plan, they
have the right to continuation coverage if group healthcare coverage under the terms of the
healthcare plan is lost for any of the following reasons:
• The death of a parent.
• A termination of a parent’s employment (for reasons other than gross misconduct) or
reduction in a parent’s hours of employment.
• Parent’s divorce or legal separation.
• A parent becomes entitled to Medicare.
• The dependent ceases to be a dependent child under the terms of the health plan.

Individuals described above who are entitled to COBRA continuation coverage are called
qualified beneficiaries. If a child is born to a covered employee or if a child is, before age 18,
adopted by or placed for adoption with a covered employee during the period of COBRA
continuation coverage, the newborn or adopted child is a qualified beneficiary. These new
dependents can be added to COBRA coverage upon timely notification to the Plan
Administrator in accordance with the terms of the group healthcare plan. Under the law, the
employee or a family member has the responsibility to inform the Plan Administrator of a
divorce, legal separation or a child losing dependent status under the terms of the healthcare
plan. This information must be provided within 60 days of the later of the event or the date on
which coverage would end under the terms of the Plan because of the event. If the information
is not provided within 60 days, rights to continuation coverage under COBRA will end. The
employer has the responsibility to notify the Plan Administrator of the employee’s death,
termination of employment or reduction in hours or Medicare entitlement.

When the Plan Administrator is notified that one of these events has happened, the Plan
Administrator will in turn notify you that you have the right to choose continuation coverage.
Under the law, you have 60 days from the later of the date you are notified of your rights or the
date you would lose coverage because of one of the events described above to inform the Plan
Administrator that you want continuation coverage. If you do not choose continuation
coverage in a timely manner, your group healthcare coverage will end. COBRA continuation
coverage is not available to any covered individual if coverage is lost due to termination of
employment for gross misconduct. If you choose continuation coverage, the employer is

24 |