Historical Newspapers of South Carolina

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Page 13 NOTICE MEDICAL PLAN COMPUES WITH COBRA Coverage Extended for Medical Benefits Effective January 1, 1987, health care benefits may be extended to eligible associates who are separated from the company for any reason other than gross misconduct, and to their eligible dependents. This is a result of legislation — The Consolidated Omnibus Budget Reconciliation Act of 1986, known as "COBRA” — which was signed into law earlier this year by President Rea gan. Under the act, an associate enrolled in Clinton Mills', Inc. group coverage who is separated from the company for any reason other than gross misconduct may elect (within a period of 60 days from separation) to purchase the same coverage for himself/herself and covered dependents at the full group rate with Clinton Mills, Inc. making no contribution. You may have the option to elect to continue coverage under the Clinton Mills, Inc. Group Medical Plan where coverage would otherwise have ended because of certain events. 1. If you quit, retire or are either laid off or terminated for reasons other than gross misconduct on your part; you, your spouse, or your dependent child may elect to continue cover age under our health plan for a period of up to eighteen (18) months, if coverage would have otherwise ended. 2. If the company reduces your hours of work to the extent that coverage ends (less than 24 hours) under the health plan; you, your spouse or your dependent child may elect to continue coverage under the health plan for a period of up to eighteen (18) months. 3. If you die while covered by the health plan, your surviving spouse or dependent child may elect to continue dependent coverage under the health plan for a period of up to thirty-six (36) months, if coverage would have otherwise ended. 4. If dependent coverage under our health plan ends be cause you become entitled to Medicare benefits, your spouse or child may elect to continue dependent coverage under the health plan for a period of up to thirty-six (36) months. 5. If your dependent child ceases to qualify as a dependent child under our health plan, your child may elect to continue coverage under our health plan for a period of up to thirty-six (36) months. Your child ceases to be a dependent under our plan if the child becomes full-time employed, marries, reaches age 19 and does not continue to be a full-time student or the child reaches age 25, even if he or she is a full-time student. 6. If you and your spouse divorce or become legally separat ed, your spouse or dependent child may elect to continue coverage under our health plan for a period of up to thirty-six (36) months if dependent coverage would have otherwise ended. You must make the above elections: a. within sixty (60) days of the date your health cover age would have ended because of one of the above events, had the new law not been passed or b. in the case of the events described above in Paragraphs 1 through 4, sixty (60) days of the date you are notified that you have the right to make an election. OTHER OPTIONS Your options to modify coverage during the period of con tinuation coverage, or to convert to an individual medical insurance policy at the end of that period are the same as those held by active, covered employees and their dependents under our health plan. DISQUALIFYING EVENTS Certain events will cut short the continuation period. They are: 1. The company’s termination of all of its health plans. 2. Your failure to pay the premium on time. 3. Your re-employment or subsequent employment, coupled with coverage under another group health plan. 4. Your becoming entitled to Medicare benefits. 5. Your remarriage, coupled with dependent coverage under another group health plan. PREMIUMS If you elect continuation health coverage, you are re sponsible for paying the premiums on time for this added coverage. You have the options of paying the premiums on a monthly basis. OTHER RESPONSIBILITIES OF EMPLOYEES AND THEIR DEPENDENTS 1. You must promptly notify the Personnel Department of the following events: a. Your divorce or legal separation from your spouse, or b. Your dependent child ceasing to be a "dependent child” (most often caused by attainment of age 19 or 25, etc.) under our health plan. c. Your address or that of your spouse, if it changed. If you have any questions relating to the subject, please contact the Personnel Department.