U.S. Department of Labor
Health Benefits Advisor for Employers
Consolidated Omnibus Budget Reconciliation Act (COBRA)
If your group health plan contains a conversion option, does your plan offer that option to each qualified beneficiary during the 180 days before COBRA coverage ends?
Conversion Option
Some group health plans contain a conversion option, which allows participants and beneficiaries whose coverage under the plan terminates, to convert from group health coverage to an individual policy. Qualified beneficiaries whose maximum period of COBRA coverage ends also must be given the option to convert to an individual policy if this conversion option is available under the plan to similarly situated individuals not receiving COBRA coverage.
The conversion option must be offered during the 180-day period ending on the expiration date of the period of COBRA coverage. The option to convert, however, need not be provided if COBRA coverage is terminated before the end of the maximum period for which it was made available.
