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COBRA

Health Benefits Under (COBRA) - The Consolidated Omnibus Budget Reconcilitaiton Act of 1985


Under the terms of the Consolidated Omnibus Reconcilition Act of 1985 (COBRA), current or former employees and their eligible dependents (spouse, dependent children) who are covered under a group health plan have the right to elect to temporarily continue health coverage if coverage is terminated due to an "event."  Those individuals eligible to continue coverage become "Qualified Beneficiaries" under this law.

The employee or "qualified beneficiary" will be required to pay 102% of the monthly premium cost.  Please see Health Insurance Plans and Rates.

Events which trigger COBRA and the Coverage Periods:

 Event

Beneficiary Eligible for COBRA

Maximum Coverage Period

  • Termination of employment(Including voluntary resignation, involuntary termination, layoff, orretirement); except for termination due to gross misconduct.  ['Retirement' does not apply to individuals who elect to continue health insurance upon retirement under the Town of Westboro]
  • Reduced work hours


Employee

Spouse

Dependent Child




18 Months

  • Employee entitled to Medicare
  • Divorce or legal separation
  • Death of employee


Spouse

Dependent Child


36 Months

  • Loss of dependent-child status

Dependent Child

36 Months