MMC Benefits Handbook
Qualifying Event—Termination of Employment
COBRA Due to Termination
COBRA coverage is available for up to 18 months if your employment ends for any reason, unless you lost your job because of gross misconduct. COBRA coverage can be extended if there is a second qualifying event during the COBRA continuation period.
Disabled at Termination
If you are disabled according to the Social Security Administration when you leave the Company or become disabled according to the Social Security Administration within the 60 calendar day COBRA election period, you and your covered family members can extend your COBRA coverage for an additional 11 months, for a total of 29 months from termination.
Note that your premiums are increased to 150% of the full group rate for those additional 11 months from the beginning of the 19th month through the end of the 29th month.
If a second qualifying event occurs within the first 18 months of the COBRA coverage, you pay the full group rate on an after-tax basis plus an additional two percent for administrative expenses from the beginning of the 19th month through the end of the 36th month. If a second qualifying event occurs within the 19th through 29th month of COBRA coverage extended for disability, your premiums will be increased by an additional 50 percent through the end of the 36th month.
Family or Medical Leave of Absence under FMLA
Taking a family or medical leave of absence under the Family and Medical Leave Act (FMLA) usually will not constitute a qualifying event. A qualifying event occurs, however, if: 1) you do not return to employment with the Company after the end of the FMLA leave, and 2) without COBRA coverage, you or your covered family member would lose coverage before the end of the maximum coverage period.
Absence Due to Military Service
Unless you have lost coverage at some point during the next 18 months, your absence from employment because of military service is not a qualifying event under COBRA; however, you may elect to continue existing coverage for up to 24 months under the Uniformed Services Employment and Reemployment Rights Act (USERRA). For an absence of more than 30 days, you are not required to pay more than 102% of the full group rate. However, if your leave of absence is less than 31 days, you may not lose your coverage and will not have to pay more than the active employee contribution.
When will I be notified about COBRA eligibility after my coverage ends because my employment terminates?
The Company has 30 calendar days to notify its COBRA Administrator of your termination of employment. You and your covered family members will be sent written notification of your COBRA eligibility within 14 days of the date the Company's COBRA Administrator has been notified of your termination of employment.
If you were terminated because of gross misconduct, neither you nor your covered family members will be eligible for COBRA.