The Consolidated Omnibus
Budget Reconciliation Act of 1986
An Employee's Guide
to Health Benefits
Under COBRA
U.S. Department of Labor
Employee Benefits Security Administration
This publication has been developed by the
U.S. Department of Labor, Employee Benefits
Security Administration. It is available on the
agency’s Web site at: www.dol.gov/ebsa
For a complete list of EBSA publications,
call the agency’s toll-free number:
1-866-444-EBSA (3272).
This material will be made available in
alternate format upon request:
Voice phone: (202) 693-8664
TTY:
(202) 501-3911
This booklet constitutes a small entity compliance guide for purposes of
the Small Business Regulatory Enforcement Fairness Act of 1996.
The Consolidated Omnibus
Budget Reconciliation Act of 1986
An Employee's Guide
to Health Benefits
Under COBRA
U.S. Department of Labor
Employee Benefits Security Administration
Reprinted September 2006
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
WHAT IS COBRA CONTINUATION COVERAGE? . . . . . . . . . .2
WHO IS ENTITLED TO CONTINUATION COVERAGE? . . . . . . . . .5
YOUR COBRA RIGHTS AND RESPONSIBILITIES:
NOTICE AND ELECTION PROCEDURES . . . . . . . . . . . . . . . . . . . . . .7
BENEFITS UNDER CONTINUATION COVERAGE . . . . . . . . . . . . .11
DURATION OF CONTINUATION COVERAGE . . . . . . . . . . . . . . . .12
SUMMARY OF QUALIFYING EVENTS, QUALIFIED
BENEFICIARIES, AND MAXIMUM PERIODS
OF CONTINUATION COVERAGE . . . . . . . . . . . . . . . . . . . . . . . . .16
PAYING FOR CONTINUATION COVERAGE . . . . . . . . . . . . . . . . .17
COORDINATION WITH OTHER FEDERAL BENEFIT LAWS . . . . . . .19
ROLE OF THE FEDERAL GOVERNMENT . . . . . . . . . . . . . . . . . . . . .21
RESOURCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
CONTENTS
1
Health insurance programs help workers and their families take care
of their essential medical needs. These programs can be one of the
most important benefits provided by an employer.
T