If there is a loss in coverage for any reason, benefits coverage for Employees and any of their enrolled dependents will expire on the last day of the month in which that Employee is no longer eligible. Coverage for a dependent will also expire when he or she no longer meets the definition of dependent under the plan. If an Employee or covered dependent loses coverage, a COBRA election form will be sent out by Passariello’s COBRA administrator, which will give the Employee and qualified beneficiaries under COBRA the option of continuing their group health coverage for a designated period, as required by COBRA (Consolidated Omnibus Budget Reconciliation Act of 1986). Domestic Partners are not eligible for COBRA. For additional information regarding COBRA benefits, Employees should contact an HR Representative.

LOSS OF COVERAGE DUE TO LACK OF HOURS

For Employees to become eligible for benefits coverage, they must work an average of at least 26 hours per week for the entire time period prior to the eligibility date or the average hours per week dictated by state law.

Eligibility reviews are conducted once a year in October to audit the previous 52 week period to determine ongoing eligibility. To stay eligible for benefits coverage, Employees must maintain no less than the state mandated hour per week average. If it is found during the annual review that an Employee falls short of the hour per week average, coverage will be lost at the end of the calendar year and that Employee will be offered COBRA. The Employee will not be able to enroll again until the next Open Enrollment period or at the time of a family status change (provided the Employee also meets the hours per week average eligibility requirements).