Userra & Cobra Alternative Coverage Rules

[Guest M Johnson]

I'm trying to write a brief description of the interplay between the continuation of health coverage under COBRA and USERRA for large employer groups. The 1999 Final COBRA Regulations indicate COBRA's "alternative coverage" rules apply to USERRA continuation coverage. (I assume USERRA should be treated as "identical" alternative coverage. ) However, after reading the COBRA regulations I still find myself confused. At this point, I believe that both USERRA and COBRA must be offered when the military leave begins even though they are basically the same. I also believe the USERRA period runs concurrently with COBRA for the first 18 months. My question is whether COBRA can be obtained for a period of time after the 18 months of USERRA is exhausted. For example, COBRA runs 18, 29 or 36 months under certain circumstances. If a person who elected USERRA later becomes disabled, can he/she elect 11 months of COBRA coverage at the end of the 18 month USERRA period? If the employee dies, are the dependents entitled to elect 36 months of coverage from the date of death? (not the date the military leave began?) Thank you!

[jeanine]

Read the userra regs again. I believe they have the same requirements for additional coverage beyond the first 18 months. Yes, they run concurrently. As far as offering both options to the reservist, there probably are a few good reasons why you just want to offer userra not COBRA. First, userra must be offered even if the employer is not required to offer COBRA. Also, the law allows the employer more discretion (I feel) to underwrite the entire cost of the premium. I would guess the employer could pay all of the userra premium for its reservists, while still requiring former employees on COBRA to contribute the entire premium cost of their coverage.

[Guest M Johnson]

Section 4317 of the USERRA statute indicates a maximum 18 months of continued health coverage is available under USERRA. The USERRA regulation (32 CFR Pt 104) also indicates there is an 18 month maximum. Do you have an exact citation for any provision that indicates COBRA-like extensions are also available under USERRA? If there are no extensions available under USERRA, it appears that COBRA must be offered in extension situations.

[jeanine]

Sorry, I was referencing a provision of state law that requires group health insurance to follow the 18 months extension. Might want to check your state law if these are not self-funded clients.