The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under FictionSoft's health plan when a "qualifying event" would normally result in the loss of eligibility. Some common qualifying events are resignation, termination (for reasons other than gross misconduct), death of an employee, a reduction in an employee's hours or a leave of absence, an employee's divorce or legal separation, and a dependent child no longer meeting eligibility requirements.
The company provides each eligible employee with a written notice describing rights granted under COBRA when employees become eligible for coverage under the company's health insurance plan. The notice contains important information about employees’ rights and obligations. You will have 60 days from the date you lose coverage or 60 days from the date you receive such information, whichever is later, to elect continued coverage.
Under COBRA, the employee or beneficiary pays the full cost of coverage at the company's group rates plus an administration fee. Coverage will end if any of the following events should occur: the company no longer provides group health coverage to any of its employees; the premium for continued coverage is not paid; you become eligible as an employee or otherwise under another group health plan; or you become eligible for Medicare.