Overview

The Federal Consolidated Budget Reconciliation Act (“COBRA”) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under the Company’s health plan when a “qualifying event” would normally result in the loss of eligibility. Some common qualifying events are resignation, termination of employment, or death of an employee; a reduction in an employee’s hours or leave of absence, divorce or legal separation and a dependent child no longer meeting eligibility requirements.

Under COBRA, the employee or beneficiary pays the full cost of coverage at the Company’s group rates. The Company provides each eligible employee with a written notice describing rights granted under COBRA when the employee becomes eligible for coverage under the Company’s health and dental insurance plan. The notice contains important information about the employee’s rights and obligations. Eligible employees may extend coverage for up to eighteen months.

Ohio: Notice of Continuing Coverage under a Group Policy for Reservists

Employees who are members of reserve components of the United States or Ohio National Guard (“reservists”) and their covered spouses and dependents are permitted to continue group policy coverage for a period of 18 months after coverage would otherwise terminate because reservists are called for or ordered to active duty.

A Reservist, his or her spouse, and his or her dependents can extend continuation of coverage to a period of 36 months if any of the following events occur during the initial 18-month continuation of coverage period: (i) the death of the reservist; (ii) the reservist and his or her spouses separate or divorce; or (iii) the reservist’s dependent children reach the group policies’ limiting age.

To elect continuation of coverage, reservists, their spouses, and/or their dependents must provide a written election of continuation of coverage and pay the initial premiums within 31 days after the reservists’ group policy coverage would otherwise terminate.