Sample Severance Agreement Cobra

In both cases, the terms of the agreement do not apply to COBRA. This leaves open the question of whether the applicable COBRA period starts from the start of the allowance/leave or after. In such a derogation, the plans may provide for an extension of the applicable COBRA periods until the loss of coverage and not until the date of the qualifying event. As a frequent example of this rule, health plans are often designed in such a way that laid-off workers are entitled to coverage until the end of the month`s notice, with COBRA starting on the first day of the following month. In the absence of clarity in the severance pay program, a staff member may assert that this extension rule applies to the compensation situation described in Example 1. No no. An employer may require a chosen employee to pay up to 102% of the health insurance costs in order to continue coverage under COBRA. . . .