An Employer'S Guide To Group Health Continuation Coverage Under Cobra - Employee Benefits Security Administration - U.s. Department Of Labor Page 13

Second Qualifying Event

An 18-month extension may be available to qualified beneficiaries receiving an 18-month maximum period of continuation

coverage (giving a total maximum period of 36 months of continuation coverage) if the qualified beneficiaries experience

a second qualifying event that is death of the covered employee, divorce or legal separation of the covered employee and

spouse, Medicare entitlement (in certain circumstances), or loss of dependent child status under the plan. The second event

can be a second qualifying event only if it would have caused the qualified beneficiary to lose coverage under the plan in

the absence of the first qualifying event.

The plan must have procedures for how a qualified beneficiary should provide notice of a second qualifying event. These

rules should be described in the plan’s SPD (and in the election notice for any offer of an 18-month period of continuation

coverage). The plan can set a time limit for providing this notice, but the time limit cannot be shorter than 60 days from

the latest of: (1) the date on which the qualifying event occurs; (2) the date on which the qualified beneficiary loses (or

would lose) coverage under the plan as a result of the qualifying event; or (3) the date on which the qualified beneficiary

is informed, through the furnishing of either the SPD or the COBRA general notice, of the responsibility to notify the plan

and the procedures for doing so.

Summary of Qualifying Events, Qualified Beneficiaries, and

Maximum Periods of Continuation Coverage

The following chart shows the maximum period for which continuation coverage must be offered for the specific qualifying

events and the qualified beneficiaries who are entitled to elect continuation coverage when the specific event occurs. Note

that an event is a qualifying event only if it causes the qualified beneficiary to lose coverage under the plan.

MAXIMUM PERIOD OF

QUALIFIED

CONTINUATION

QUALIFYING EVENT

BENEFICIARIES

COVERAGE

Termination (for reasons other than gross

Employee

18 months

misconduct) or reduction in hours of employment

Spouse

Dependent Child

Employee enrollment in Medicare

Spouse

36 months

Dependent Child

Divorce or legal separation

Spouse

36 months

Dependent Child

Death of employee

Spouse

36 months

Dependent Child

Loss of “dependent child” status under the plan

Dependent Child

36 months

In certain circumstances, qualified beneficiaries entitled to 18 months of continuation coverage may become entitled to a disability extension of an additional 11

months (for a total maximum of 29 months) or an extension of an additional 18 months due to the occurrence of a second qualifying event (for a total maximum

of 36 months). (See Duration of Continuation Coverage earlier in this booklet.)

The actual period of continuation coverage may vary depending on factors such as whether the Medicare entitlement occurred prior to or after the end of the

covered employee’s employment or reduction in hours. For more information, see Duration of Continuation Coverage earlier in this booklet or contact

askebsa.dol.gov or by calling 1-866-444-3272.

the Department of Labor’s Employee Benefits Security Administration (EBSA) electronically at

AN EMPLOYER’S GUIDE TO GROUP HEALTH CONTINUATION COVERAGE UNDER COBRA