Health Benefits Advisor for Employers

Consolidated Omnibus Budget Reconciliation Act (COBRA)

When your group health plan terminates the COBRA coverage of one or more qualified beneficiaries early for any of the reasons specified above, does the plan administrator provide each of those qualified beneficiaries with a notice of early termination as soon as practicable after the decision to terminate is made?

• Yes
• No

Notice of Early Termination of Continuation Coverage

COBRA coverage is generally available for a maximum period up to 18, 29, or 36 months. Your group health plan may terminate COBRA coverage early, however, for any of the following reasons:

• Payments are not made timely;
• The employer or employee organization ceases to maintain any group health plan;
• A qualified beneficiary begins coverage under another group health plan after electing COBRA coverage (as long as that plan does not impose an exclusion or limitation affecting a preexisting condition of the qualified beneficiary);
• A qualified beneficiary becomes entitled to Medicare benefits after electing COBRA coverage; or
• A qualified beneficiary engages in conduct that would justify the plan in terminating coverage of a similarly situated participant or beneficiary not receiving COBRA coverage (such as submitting a fraudulent claim).

When a group health plan decides to terminate COBRA coverage early for any of the reasons listed above, the plan administrator must give the qualified beneficiary a notice of early termination. The notice must be given as soon as practicable after the decision is made, and it must describe:

• The date of termination of COBRA coverage;
• The reason for termination; and
• Any rights the qualified beneficiary may have under the plan or applicable law to elect alternative group or individual coverage, such as a right to convert to an individual policy.