Each employer who normally employed at least 20 full-time or full-time-equivalent employees during the prior calendar year must offer continued health insurance coverage, as mandated by the Consolidated Budget Reconciliation Act (COBRA), following the occurrence of a “qualifying event”, if the qualifying event would otherwise lead to a loss of health insurance coverage. Qualifying events include voluntary or involuntary termination of employment, reduction of hours, the covered employee’s death, the covered employee’s divorce or legal separation, the covered employee becoming entitled to Medicare, the loss of dependent child status, or the employer’s filing for bankruptcy. The continuation coverage may last (generally) from 18 months to 36 months after the qualifying event occurs.
Excerpted from the Michigan Chamber’s HR Essentials Guide: From Hiring to Termination handbook authored by attorneys from Foster, Swift, Collins and Smith, P.C.
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