At its June 11 meeting, the Trustees of the Local 802 Health Benefits Fund modified the self-pay (COBRA) continuation coverage language in the HBP Summary Plan Description as follows:
For Plan A participants, if you lose eligibility due to insufficient contributions in an Employment Period but have had some contribution made on your behalf in that Employment Period, you may pay the self-pay rate less 50 percent of those contributions and any banking credits to maintain your coverage. To do this, you must meet several requirements. First, coverage being paid for must include the employee (i.e. dependent-only coverage is not permitted). Second, payment for each six months of coverage must be made in one lump sum. Third, in the event that the self-pay rate is lower than the regular eligibility rate, you must pay the regular eligibility rate less 50 percent of any contributions that you have accumulated.
For Plan B participants, you may use 50 percent of your accumulated credits for the first six month period only. All other rules are the same as above.
Full details on continuation coverage will be furnished to you or your dependents when the plan office receives notice that one of the qualifying events described above has occurred. Therefore, we urge employees and dependents to contact the plan office as soon as possible after one of these events occur.
These plan modifications are effective with the contribution period ending Dec. 31, 2003 and eligibility period beginning April 1-Sept. 30, 2004.