Defining COBRA occurrence types

An occurrence is an event that an employee or the employee's qualified beneficiaries can use to continue benefit coverage. Examples of an occurrence include divorce, separation, death, termination, reduction in working hours, or a dependent whose age exceeds the plan definition of a dependent.

Define the occurrences and the number of months coverage extends for each occurrence. In addition, you can assign standard letters to occurrences.

  1. Access COBRA Occurrence Types (BN00.3).
  2. Select the Company.
  3. In the Multiple Events Maximum fields, specify the maximum number of months of coverage to extend for multiple occurrences.
  4. Specify this information:
    Type

    Specify the code that represents the kind of occurrence.

    Event

    If you are sending HIPAA EDI transactions, select an event for each occurrence type. Otherwise, leave this field blank.

    Description

    Provide the occurrence description. For example, reduction in working hours.

    Months

    Specify the number of months that COBRA participant coverage extends for this occurrence. For example, 18 months after a reduction in working hours.

    Letter

    Select a standard letter if you send a standard letter to people with this occurrence. A standard letter is defined using Standard Letter (BN05).

  5. Click Add.

Related reports and inquiries

This table shows the related reports and inquiries:

Function Form
Define standard letters. Standard Letter (BN05.1)