Common use of Transition Coverage Clause in Contracts

Transition Coverage. 11.5.1 Pursuant to federal law (COBRA), an employee who has been receiving health benefits, and who terminates his/her position or is terminated (except for gross misconduct), is entitled to continue group coverage at his/her expense for up to eighteen (18) months). Note: For a limited time pursuant to federal law, an eligible employee who is terminated may purchase health insurance for up to nine (9) months and pay 35% of the insurance premium. 11.5.2 In certain circumstances, the employee’s spouse, former spouse, or dependent child may have a right to continued coverage for up to thirty-six (36) months. 11.5.3 Continued coverage may be subject to an administrative fee levied by the program administrator