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The plans offered to a COBRA-qualified beneficiary in the COBRA letter depend on Customizing settings in the Benefits Administration Implementation Guide, as explained below.
Health Plans and Health FSAs
You can determine whether you want the initial COBRA offer to include all COBRA-relevant plans in which an employee is eligible to participate or only those COBRA-relevant plans in which a beneficiary was enrolled prior to the qualifying event. You do this in the step COBRA ® Define Processing Parameters.
Health Plans
You can restrict the number and types of dependents eligible for dependent coverage options in health plans. If you do this, the coverage option elected by an employee during regular plan participation may become invalid if the employee’s dependents change. This can happen in the case of the event types Child's loss of dependent status, Divorce, and Legal separation. In this case, the system automatically offers an alternative option for which the correct number and types of dependents are available. You define dependent eligibility in the steps Plans
® Health Plans ® Define Dependent Coverage Options and Define Minimum and Maximum Numbers of Dependents.Health FSAs
COBRA coverage does not have to be offered for health FSAs if, as of the qualifying event date, the amount that can be reimbursed for the remainder of the plan year is less than or equal to the target payment amount for the same period. You can therefore determine whether you want to offer COBRA coverage continuation only for those FSAs that have a positive balance on the date of the COBRA event, or for all FSAs regardless of their balance. You do this in the step COBRA ® Define Processing Parameters.
