Common use of Transition Coverage Clause in Contracts

Transition Coverage. Pursuant to Federal Law (COBRA), an employee who terminates or is terminated (except for gross misconduct) is entitled to continue group health plan coverage at the group rate for up to eighteen (18) months. 1) An employee’s spouse, former spouse, or dependent child may have a right to continued coverage for up to thirty-six (36) months. 2) All such continued coverage is at the sole cost of the employee or other qualified individual. 00133161.2 3) COBRA specifically provides that continued coverage may be subject to an administrative fee (up to two percent [2%] of the monthly premium cost). Any such fee will be established in accordance with COBRA and applicable regulations. 00133161.2

Transition Coverage. Pursuant to Federal Law (COBRA), an employee who terminates or is terminated (except for gross misconduct) is entitled to continue group health plan coverage at the group rate for up to eighteen (18) months. 1) 25.3.1 An employee’s spouse, former spouse, or dependent child may have a right to continued coverage for up to thirty-six (36) months. 2) 25.3.2 All such continued coverage is at the sole cost of the employee or other qualified individual. 00133161.2. 3) 25.3.3 COBRA specifically provides that continued coverage may be subject to an administrative fee (up to two percent [2%] of the monthly premium cost). Any such fee will be established in accordance with COBRA and applicable regulations. 00133161.2.