(A) The Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under the town’s health plan when a “qualifying event” would normally result in the loss of eligibility. Common qualifying events include but are not limited to resignation, termination of employment, death of an employee, a reduction in an employee’s hours or a leave of absence; an employee’s divorce or legal separation and a dependent child no longer meeting eligibility requirements.
(B) Under COBRA the employee or beneficiary pays the full cost of coverage at the town’s group rates, plus an administration fee. The town, through a third-party administrator, provides each eligible employee with a written notice describing rights granted under COBRA when the employee becomes eligible for coverage under the town’s health insurance plan. The notice contains important information about the employee’s rights and obligations. Supervisors must notify the Clerk- Treasurer immediately after an employee is terminated.
(C) Specific details regarding eligibility and coverage are available from the Clerk-Treasurer.
(Ord. 05-04, passed 2-28-2005)