Above and Beyond

What does COBRA mean to you? No, it's not a poisonous snake coming back
to bite you in the butt. The Consolidated Omnibus Reconciliation Act
(COBRA) extends health-insurance coverage to employees and dependents
beyond the point at which such coverage traditionally ceases.

COBRA allows a former employee after he or she has quit or been terminated
(except for gross misconduct) the right to continued coverage under you group
health for up to 18 months. Employee's spouses can obtain COBRA coverage
for up to 36 months after divorce or death of the employee, and children can
receive up to 36 months of coverage when they reach the age at which they are
no longer classified as dependents under the group health plan.

The good news: Giving COBRA benefits shouldn't cost you company a penny.
Employers are permitted by law to charge recipients 102 percent of the cost of
extending the benefits (the extra two percent covers administrative costs).

The federal COBRA plan applies to all companies with more than 20
employees. However, many states have similar laws that pertain to much
smaller companies, so even if your company is exempt for federal insurance
laws, you may still have to extend benefits under certain circumstances.
Contact the U.S. Department of Labor to determine whether your company
must offer COBRA or similar benefits, and the rules for doing so.