COBRA

COBRA Coverage Third Party Administrator Contact Information:
Benefits Outsource Inc. :
Toll Free : 888.877.2780
Phone: 954.680-7626
Fax: 954.680.7630

COBRA General Notice of Continuation Coverage Rights
Introduction
You’re getting this notice because you recently gained coverage under a group health plan or you are receiving
this notice due to open enrollment. This notice has important information about your right to COBRA
continuation coverage, which is a temporary extension of coverage under the Plan. This notice explains
COBRA continuation coverage, when it may become available to you and your family, and what you
need to do to protect your right to get it. When you become eligible for COBRA, you may also become
eligible for other coverage options that may cost less than COBRA continuation coverage.
The right to COBRA continuation coverage was created by a federal law, the Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA). COBRA continuation coverage can become available to you and other
members of your family when group health coverage would otherwise end. For more information about your
rights and obligations under the Plan and under federal law, you should review the Plan’s Summary Plan
Description or contact the Plan Administrator.
You may have other options available to you when you lose group health coverage.
For example, you may be eligible to buy an individual plan through the Health Insurance Marketplace. By
enrolling in coverage through the Marketplace, you may qualify for lower costs on your monthly premiums and
lower out-of-pocket costs. Additionally, you may qualify for a 30-day special enrollment period for another
group health plan for which you are eligible (such as a spouse’s plan), even if that plan generally doesn’t accept
late enrollees.
What is COBRA continuation coverage?
COBRA continuation coverage is a continuation of Plan coverage when it would otherwise end because of a life
event. This is also called a “qualifying event.” Specific qualifying events are listed later in this notice. After a
qualifying event, COBRA continuation coverage must be offered to each person who is a “qualified
beneficiary.” You, your spouse, and your dependent children could become qualified beneficiaries if coverage
under the Plan is lost because of the qualifying event. Under the Plan, qualified beneficiaries who elect
COBRA continuation coverage must pay for COBRA continuation coverage.
If you’re an employee, you’ll become a qualified beneficiary if you lose your coverage under the Plan because
of the following qualifying events:
·Your hours of employment are reduced, or
·Your employment ends for any reason other than your gross misconduct.
If you’re the spouse of an employee, you’ll become a qualified beneficiary if you lose your coverage under the
Plan because of the following qualifying events:
·Your spouse dies;
·Your spouse’s hours of employment are reduced;
·Your spouse’s employment ends for any reason other than his or her gross misconduct;
·Your spouse becomes entitled to Medicare benefits (under Part A, Part B, or both); or
·You become divorced or legally separated from your spouse.
Your dependent children will become qualified beneficiaries if they lose coverage under the Plan because of the
following qualifying events:
·The parent-employee dies;
·The parent-employee’s hours of employment are reduced;
·The parent-employee’s employment ends for any reason other than his or her gross misconduct;
·The parent-employee becomes entitled to Medicare benefits (Part A, Part B, or both);
·The parents become divorced or legally separated; or
·The child stops being eligible for coverage under the Plan as a “dependent child.”
Sometimes, filing a proceeding in bankruptcy under title 11 of the United States Code can be a qualifying event.
If a proceeding in bankruptcy is filed with respect to the City of Miami Beach, and that bankruptcy results in the
loss of coverage of any retired employee covered under the Plan, the retired employee will become a qualified
beneficiary. The retired employee’s spouse, surviving spouse, and dependent children will also become
qualified beneficiaries if bankruptcy results in the loss of their coverage under the Plan.
When is COBRA continuation coverage available?
The Plan will offer COBRA continuation coverage to qualified beneficiaries only after the Plan Administrator
has been notified that a qualifying event has occurred. The employer must notify the Plan Administrator of the
following qualifying events:
·The end of employment or reduction of hours of employment;
·Death of the employee;
·Commencement of a proceeding in bankruptcy with respect to the employer; or
·The employee’s becoming entitled to Medicare benefits (under Part A, Part B, or both).
For all other qualifying events (divorce or legal separation of the employee and spouse or a dependent
child’s losing eligibility for coverage as a dependent child), you must notify the Plan Administrator
within 60 days after the qualifying event occurs. You must provide this notice to:
Human Resources Department/ Employee Benefits: 305.673.7524
How is COBRA continuation coverage provided?
Once the Plan Administrator receives notice that a qualifying event has occurred, COBRA continuation
coverage will be offered to each of the qualified beneficiaries. Each qualified beneficiary will have an
independent right to elect COBRA continuation coverage. Covered employees may elect COBRA continuation
coverage on behalf of their spouses, and parents may elect COBRA continuation coverage on behalf of their
children.
COBRA continuation coverage is a temporary continuation of coverage that generally lasts for 18 months due
to employment termination or reduction of hours of work. Certain qualifying events, or a second qualifying
event during the initial period of coverage, may permit a beneficiary to receive a maximum of 36 months of
coverage.
There are also ways in which this 18-month period of COBRA continuation coverage can be extended:
Disability extension of 18-month period of COBRA continuation coverage
If you or anyone in your family covered under the Plan is determined by Social Security to be disabled and you
notify the Plan Administrator in a timely fashion, you and your entire family may be entitled to get up to an
additional 11 months of COBRA continuation coverage, for a maximum of 29 months. The disability would
have to have started at some time before the 60th day of COBRA continuation coverage and must last at least
until the end of the 18-month period of COBRA continuation coverage.
Second qualifying event extension of 18-month period of continuation coverage
If your family experiences another qualifying event during the 18 months of COBRA continuation coverage, the
spouse and dependent children in your family can get up to 18 additional months of COBRA continuation
coverage, for a maximum of 36 months, if the Plan is properly notified about the second qualifying event. This
extension may be available to the spouse and any dependent children getting COBRA continuation coverage if
the employee or former employee dies; becomes entitled to Medicare benefits (under Part A, Part B, or both);
gets divorced or legally separated; or if the dependent child stops being eligible under the Plan as a dependent
child. This extension is only available if the second qualifying event would have caused the spouse or
dependent child to lose coverage under the Plan had the first qualifying event not occurred.
Are there other coverage options besides COBRA Continuation Coverage?
Yes. Instead of enrolling in COBRA continuation coverage, there may be other coverage options for you and
your family through the Health Insurance Marketplace, Medicaid, or other group health plan coverage options
(such as a spouse’s plan) through what is called a “special enrollment period.” Some of these options may cost
less than COBRA continuation coverage. You can learn more about many of these options at
www.healthcare.gov.
If you have questions:
Questions concerning your Plan or your COBRA continuation coverage rights should be addressed to the
contact or contacts identified below. For more information about your rights under the Employee Retirement
Income Security Act (ERISA), including COBRA, the Patient Protection and Affordable Care Act, and other
laws affecting group health plans, contact the nearest Regional or District Office of the U.S. Department of
Labor’s Employee Benefits Security Administration (EBSA) in your area or visit www.dol.gov/ebsa.
(Addresses and phone numbers of Regional and District EBSA Offices are available through EBSA’s website.)
For more information about the Marketplace, visit www.HealthCare.gov.
Keep your Plan informed of address changes
To protect your family’s rights, let the Plan Administrator know about any changes in the addresses of family
members. You should also keep a copy, for your records, of any notices you send to the Plan Administrator.
Plan contact information:
Human Resources Department/ Employee Benefits: 305.673.7524