What is it?
When a member of a group insurance plan loses coverage, they are offered the opportunity to remain covered by that plan for a designated amount of time, 18-36 months depending on the reason for losing coverage, as long as they pay the full monthly premium amount. Reasons for losing coverage include: resignation, termination for reasons other than gross misconduct, lay-off, or reduction of hours to part-time. A family member covered on an employee’s group can also be eligible to continue if they lose coverage due to divorce or a child aging out of being an eligible dependent, or when they lose coverage if the employee’s eligibility ends for one of the reasons above.
How does it work?
Once the coverage ends, the member(s) will receive a packet of information, either from the group employer directly or a designated company which administers the continuation benefits, notifying the person of their continuation rights & member has a certain number of days to elect continuation.
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