The Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) is a federal law that allows for continuation of coverage under an employer's group health plan to covered persons (called "qualified beneficiaries") follo a qualifying event.
A qualified beneficiary is an individual who, on the day before the qualifying event, is covered under the Plan either as an employee, enrollee's dependent spouse or enrollee's dependent child. A qualified beneficiary is also a child born to the employee, or who is placed for adoption with the employee during a period of COBRA continuation coverage.
A qualifying event is an occurrence which, but for the continuation coverage available under the Plan, would result in the loss of coverage for a qualified beneficiary.
Under COBRA, qualifying events include the loss of coverage that otherwise would result due to:
- Termination of Employment for reasons other than gross misconduct.
- Reduction in hours of employment.
- Death of the enrollee.
- Divorce or legal separation.
- Entitlement to Medicare.
- Loss of dependent eligibility.
Refer to the 2021 Plan document at knowyourbenefits.dfa.ms.gov/publications/ for more information about COBRA Benefits.