SIDEBAR SPRING 2021 - 9

MONTGOMERYBAR.ORG

UNDERSTANDING
COBRA

T

he Consolidated Omnibus Reconciliation Act (COBRA) is a federal
law that requires employers with 20 or more employees to offer
continuing coverage to individuals who might otherwise lose their
health benefits due to a qualifying event. Some states have similar laws for
smaller groups. These qualifying events that could trigger COBRA are:
* An employee's termination of employment, unless for reasons of gross
misconduct
* An employee's reduction in hours of employment
* A strike or walkout

month, if needed. In our new virtual
world, inconsistent or undependable
connections are a non-starter.
I put a clause into my retainer
agreement relating to the use of virtual
communication with my clients. It is in
the paragraph about maintaining contact
with clients, etc. I state that, at times,
virtual communication will be utilized
and require the client to confirm that
they are able to utilize Zoom or a similar
application. I give them an opportunity
to opt out of this and specify the means
of preferred communication.
The best advice my father gave me
was, " look sharp and people will think
you're sharp. " Today, that applies to
technology. You have to " know how to
work it, not how it works. "
Enjoy the internet, e-mail and
social media, but " Let's be careful out
there! " Please send your questions
and comments to me at: joel@
bernbaumfamilylaw.com

* The company's bankruptcy
In the situations above, the employee and any covered dependents are
entitled to 18 months of continued coverage through COBRA.
Additionally, the spouse and/or children of a qualified employee are
entitled to 36 months of coverage as a result of:
* Death of the covered employee
* Divorce or legal separation
* The employee becoming eligible for Medicare benefits
* A dependent child ceasing to be eligible under the employee's medical
plan
Once a qualifying event occurs, the employer is required to send the
employee a notice within 14 days informing them of their eligibility.
Normally, the employee has 60 days to accept coverage which can carry
a premium of 102% of the group premium (the extra 2% is an optional
administrative fee the employer may include). The coverage under COBRA
would be the same coverage the employee had on the group plan.
The Montgomery Bar Association offers its members access to My Benefit
Advisor as a solution for employee benefits, including voluntary offerings.
For more information about My Benefit Advisor, visit our website at montba.
mybenefitadvisor.com or contact Ray Keough at (610) 684-6932.

SPRING 2021 9
http://montgomerybar.org http://www.montba.mybenefitadvisor.com
SIDEBAR SPRING 2021

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