Health Benefits Advisor for Employers

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Does your group health plan provide for at least the maximum required period of COBRA coverage for each type of qualifying event?

• Yes
• No

Maximum Required Duration of COBRA Coverage

COBRA requires that continuation coverage be made available for a limited period of time of 18 or 36 months. The length of time for which COBRA coverage must be made available (the "maximum required period" of continuation coverage) depends on the type of qualifying event that gave rise to the COBRA rights. A plan, however, may provide longer periods of coverage beyond the maximum required period.

The maximum required period of COBRA coverage is 18 months if the qualifying event is:

• Termination of employment (for reasons other than gross misconduct); or
• Reduction in hours of work.

The maximum required period of COBRA coverage is 36 months if the qualifying event is:

• Death of the covered employees;
• Covered employee's becoming entitled to Medicare;
• Divorce;
• Legal separation; or
• Child's loss of dependent status under the plan.

If the plan provides retiree health coverage, in the case of a qualifying event that is the bankruptcy of the employer, the maximum required period of COBRA coverage for a qualified beneficiary who is the retired covered employee ends on the date of the retired employee's death. The maximum required coverage period for a qualified beneficiary who is the spouse, surviving spouse, or dependent child of the retired covered employee ends on either the qualified beneficiary's death, or 36 months after the death of the retired covered employee, whichever is earlier.