COBRA

36 months — When a dependent child loses eligibility under a parent's group health plan because the child exceeds the plan's age limit for dependents — an 'aging out' event — COBRA entitles the child to continue coverage for up to 36 months. This is longer than the 18-month continuation period that applies when a covered employee loses coverage due to termination of employment or reduction in hours. The 36-month dependent extension is a specific COBRA number tested on the A&H exam. The 36-month extension also applies to other dependent qualifying events, such as divorce or legal separation, while 18 months is reserved for the employee's own loss of coverage from termination or reduced hours.

National insurance concept

Continue the same group coverage for a limited period by paying the full premium, including the employer's share, plus a small administrative fee — COBRA gives qualified beneficiaries the right to continue their group health coverage after a qualifying event such as termination of employment or reduction in hours. The beneficiary must pay the entire premium — the employee's share plus the employer's share — plus an administrative fee, which together may not exceed 102 percent of the applicable premium for the coverage. COBRA is a continuation of the existing group coverage for a limited period, not free coverage, not a conversion to a permanent policy, and not an employer-paid benefit.

National insurance concept