COBRA is the federal law which requires most group health plans, including Healthcare Flexible Spending Accounts, to give employees, and their covered dependents, "qualified beneficiaries" the opportunity to continue their group health benefits when there is a "qualifying event.” Qualifying events include (but not limited to) termination of employment, retirement, divorce, death, etc. which would result in a loss of coverage under an employer's plan. Continuation coverage for each qualified beneficiary must be the identical coverage that the plan offers to active employees and covered dependents.
The employee or family member must provide written notice to Benefits within 60 days of the event, when a covered spouse loses eligibility due to divorce or a dependent child loses eligibility. The City extends a COBRA-like continuation of coverage option to domestic partners and their dependents who lose eligibility for group benefits.
The law specifies the time frames within which qualified beneficiaries must be notified, allowed to elect continuation coverage and make payments. The cost to qualified beneficiaries may not exceed 102% of the premium equivalent cost of insurance for the active group.