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Reduction in Hours of Work

Many group health plans require employees to work a certain number of hours over a given period to remain eligible for benefits.  Thus, if employees have their hours reduced, they may lose coverage under your health plan.  When this occurs, a covered employee experiences the “Reduction in Hours” qualifying event, entitling the employee and his/her spouse and dependents, if enrolled, to COBRA continuation coverage. 

Provide Notice to Your Plan - Within 30 Days of the Event

If an event occurs that triggers an employee’s or family member’s rights to COBRA coverage, the employer must notify its group health plan of the event. The group health plan is not required to act until it receives an appropriate notice of such a qualifying event.  When one of these events occurs, the employer has 30 days after the event to provide notice to the plan.

 The employer is required to notify the plan if the qualifying event is:

  • Termination or reduction in hours of employment of the covered employee;
  • Death of the covered employee; or
  • Covered employee's becoming entitled to Medicare.

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