Cobra - Multiple Qualifying Events

[Guest Vicky B]

An employee terminates coverage, does not elect Cobra but the dependent spouse does. The spouse has been declared disabled by Social Security. The group was planning on extending his coverage from 18 months (charging 102%) to 29 months (charging 150%). Now we find out that the ex-employee and the spouse have divorced. If we're interpreting things correctly, it seems that the group now must offer the spouse an extension to 36 months at the original 102% of premium. Does this sound correct? Thanks.

[JWK]

You are correct according to the final COBRA regulations (which officially take effect for QEs on and after 1/1/2000, but which in this situation I would follow now). In A-1(B) of the -8 regs, the following sentence appears:

"If a qualified beneficiary entitled to a disability extension experiences a second qualifying event within the original 18-month maximum coverage period, then the plan is not permitted to require the payment of an amount that exceeds 102 percent of the applicable premium for any period of COBRA continuation coverage."

[This message has been edited by JWK (edited 10-08-1999).]