COBRA and Retiree Medical Plan

[DTH]

We cover retirees under plan A, which is the same for active employees, until age 65. At age 65 retirees receive a fixed amount towards coverage in Plan B. Under the deferred event rule, we know that COBRA will apply to Plan A when the employee loses coverage but only for the time remaining in the 18-month COBRA coverage period (i.e., the COBRA period is measured at the original event, termination).

My question is does COBRA apply to plan B? I assume not since the qualified beneficiares could have elected COBRA under plan A and still have gotten the subsidy under plan B.

Thanks!

[Ron Snyder]

It really depends on how the plan or plans are drafted. The COBRA requirement applies to both plans, but if A and B are separate parts or coverages under the same plan, only one COBRA requirement. If they are separate, however, a separate COBRA right will attach.