UNITED STATES DEPARTMENT OF LABOR
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eligible to receive TRA, but have not yet exhausted their unemployment insurance (UI) benefits, and individuals receiving
benefits under Alternative Trade Adjustment Assistance (ATAA) or Reemployment Trade Adjustment Assistance (RTAA),
and who did not elect COBRA during the general election period, may get a second election period. This additional,
second election period is measured 60 days from the first day of the month in which an individual is determined eligible for
the TAA benefits listed above and receives such benefit. For example, if an individual’s general election period runs out
and he or she is determined eligible for TRA (or would be eligible for TRA but have not exhausted UI benefits) or begin to
receive ATAA or RTAA benefits 61 days after separating from employment, at the beginning of the month, he or she would
have approximately 60 more days to elect COBRA. However, if this same individual does not meet the eligibility criteria
until the end of the month, the 60 days are still measured from the first of the month, in effect giving the individual about
30 days. Additionally, a COBRA election must be made not later than 6 months after the date of the TAA-related loss
of coverage. COBRA coverage chosen during the second election period typically begins on the first day of that period.
More information about the Trade Act is available at doleta.gov/tradeact/.
Benefits under Continuation Coverage
If you elect continuation coverage, the coverage you are given must be identical to the coverage that is currently available
under the plan to similarly situated active employees and their families (generally, this is the same coverage that you had
immediately before the qualifying event). You will also be entitled, while receiving continuation coverage, to the same
benefits, choices, and services that a similarly situated participant or beneficiary is currently receiving under the plan, such
as the right during an open enrollment season to choose among available coverage options. You will also be subject to the
same rules and limits that would apply to a similarly situated participant or beneficiary, such as co-payment requirements,
deductibles, and coverage limits. The plan’s rules for filing benefit claims and appealing any claims denials also apply.
Any changes made to the plan’s terms that apply to similarly situated active employees and their families will also apply
to qualified beneficiaries receiving COBRA continuation coverage. If a child is born to or adopted by a covered employee
during a period of continuation coverage, the child is automatically considered to be a qualified beneficiary receiving
continuation coverage. You should consult your plan for the rules that apply for adding your child to continuation coverage
under those circumstances.
Duration of Continuation Coverage
Maximum Periods
COBRA requires that continuation coverage extend from the date of the qualifying event for a limited period of time of
18 or 36 months. The length of time for which continuation coverage must be made available (the “maximum period” of
continuation coverage) depends on the type of qualifying event that gave rise to the COBRA rights. A plan, however, may
provide longer periods of coverage beyond the maximum period required by law.
When the qualifying event is the covered employee’s termination of employment or reduction in hours of employment,
qualified beneficiaries are entitled to 18 months of continuation coverage.
When the qualifying event is the end of employment or reduction of the employee’s hours, and the employee became entitled
to Medicare less than 18 months before the qualifying event, COBRA coverage for the employee’s spouse and dependents can
last until 36 months after the date the employee becomes entitled to Medicare. For example, if a covered employee becomes
entitled to Medicare 8 months before the date his/her employment ends (termination of employment is the COBRA qualifying
event), COBRA coverage for his/her spouse and children would last 28 months (36 months minus 8 months).
For all other qualifying events, qualified beneficiaries must be provided 36 months of continuation coverage.
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Under COBRA, certain retirees and their family members who receive post-retirement health coverage from employers have special COBRA rights in the event
that the employer is involved in bankruptcy proceedings begun on or after July 1, 1986. This booklet does not fully describe the COBRA rights of that group.