The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires that an employer who sponsors a group health plan must give the plan's "qualified beneficiaries" the opportunity to elect "continuation coverage" under the plan when the beneficiaries might otherwise lose coverage upon the occurrence of certain "qualifying events," including:
- Death of the covered employee,
- Termination of the covered employee's employment (except in cases of gross misconduct),
- Reduction in hours, or
- Divorce or legal separation from the covered employee.
A "qualified beneficiary" entitled to make a COBRA election may be a "covered employee," (someone covered by the employer's plan because of his/her own employment), or a covered employee's spouse or dependent child who was covered by the plan prior to the occurrence of the "qualifying event."
COBRA demands that the continuation coverage offered to qualified beneficiaries be identical to what the plan provides to plan beneficiaries who have not suffered a qualifying event. The full cost of the COBRA coverage is paid by the individual with the qualifying event.
Once the coverage is initially lost, Indiana Wesleyan University's third party administrator will promptly send an information packet to the individual with the qualifying event outlining all terms and conditions of the medical plan.
This policy applies to all the employees of the University.
17-Mar-2015 - Date conversion to KB
Employee Policy 300.04.03
Executive Director for Human Resources
Vice President for Business Affairs/ CFO