(A) All village employees receiving health insurance coverage are entitled to continued health insurance coverage under the Federal Consolidated Omnibus Reconciliation Act (COBRA). The employee (or employee's designee) must comply with certain time periods to accept COBRA conditions (60 calendar days after the employee has been notified by the Insurance Plan Administrator). If accepted, the employee is required to pay the village 102% of what the employee's chosen insurance coverage would cost the village (100% of the cost of the coverage plus 2% for administrative costs). In the event of a 36-month qualifying event (see below), charges in the amount of 150% of the monthly premium will be assessed for the months 19 through 36.
(B) If the employee fails to pay the premium within the allotted time given to do so, if new benefits have been attained through remarriage or employment, or the group plan is dropped by the village, the employee may lose these insurance benefits.
(C) The following illustrates present COBRA conditions:
Qualifying Event | Eligible Beneficiaries | Period of Time Coverage May Continue |
Voluntary termination | Former employee and his/her spouse and dependent children | Up to 18 months |
Involuntary termination, except when resulting from gross misconduct | Former employee and his/her spouse and dependent children | Up to 18 months |
Death of an insured employee | Surviving spouse and dependent children | Up to 3 years |
Divorce and legal separation of insured employee | Former spouse and dependent children | Up to 3 years |
Dependent child whose status or dependency ceases due to reaching the age of 19 or 25, if a full-time student at an accredited college or trade school. Student status must be verifiable | Employee's dependent children | Up to 3 years |
Attainment of Medicare eligibility by insured employee | Medicare-eligible employee's spouse and dependent children | Up to 3 years |
(Ord. 2000-02, passed 5-17-00)