Policy/Memo 124r1

Number: Policy Memo 124r1
Date Issued: May 6, 2004
Date Revised: November 14, 2017
Policy File Ref: A1320
Subject: Effect On Qualified Beneficiaries When Enrollee's COBRA Coverage Is Terminated Due To The Enrollee's Medicare Entitlement

ISSUE:

Determine how IRS Revenue Ruling 2004-22 applies to NYSHIP COBRA coverage for dependents of persons terminated from COBRA coverage due to eligibility to receive Medicare benefits.

Purpose:

Determine how long a qualified beneficiary can continue COBRA coverage after COBRA family coverage is cancelled due to the enrollee’s Medicare entitlement.

Background:

The duration of time a qualified beneficiary is eligible for COBRA coverage after the enrollee loses COBRA due to Medicare entitlement has occasionally caused confusion.

Policy:

When an enrollee loses COBRA family coverage due to Medicare entitlement, qualified beneficiaries are able to continue COBRA for the remainder of their 36 month eligibility period.

Newly eligible dependents may be added to COBRA coverage, but such dependents lose eligibility when the enrollee’s COBRA is terminated.