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© Hitesman & Wold, P.A. 2019 Cafeteria Plan Summary Description (3-11) 55 PART X. CONTINUATION COVERAGE 10.1 What are my continuation rights under COBRA? The Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA”) requires most employers with twenty (20) or more employees to offer employees and their families (spouse and/or dependent children) the opportunity to pay for a temporary extension of hea lth coverage (called "continuation coverage") at group rates in certain instances where health coverage under employer sponsored group health plan(s) would otherwise end. There is no requirement that a person be insurable to elect continuation coverage. However, a person who continues coverage may have to pay all of the premium for the continuation coverage. The Group Medical Plan, Group Dental Plan, Health Flexible Spending Account, and Limited Scope Health Flexible Spending Account shall be operated consistent with COBRA. Please refer to the Employer’s COBRA policies and procedures contained in a separate document and is incorporated by reference into this summary. This document is available to you upon request, at no charge. 10.2 What special COBRA rules apply to the Health FSA and Limited Scope Health FSA? Modified COBRA continuation coverage rules apply to the Health FSA and Limited Scope Health FSA. Continuation coverage is generally available on the same terms and conditions that apply to the group health plans. There are, however, several differences. For example, the beginning date of the continuation coverage is earlier. If elected, continuation coverage begins on the date of the qualifying event . Furthermore, the maximum duration of the continuation coverage is much shorter. If the account is “underspent” at the time of the loss, the maximum duration of COBRA is through the end of the Plan Year in which the loss takes place. If the account is “overspent” at the time of the loss, there is no requ irement that COBRA be offered. Underspent. An account is UNDERSPENT when the remaining annual limit (elected annual limit minus expenses reimbursed as of date of COBRA qualifying event) is greater than the maximum COBRA premium (sum of monthly contributi ons for the rest of the plan year plus 2%) that can be charged for the rest of the plan year. Overspent. An account is OVERSPENT when the remaining annual limit (elected annual limit minus expenses reimbursed as of date of COBRA qualifying event) is less than the maximum COBRA premium (sum of monthly contributions for the rest of the plan year plus 2%) that can be charged for the rest of the plan year. 10.3 What are my continuation rights under USERRA? If you are called to active duty in the uniformed services, you may elect to continue coverage for you and your eligible dependents under USERRA for a period of up to 24 months. You and your eligible dependents qualify for this extension if you are called into active or reserve duty, whether voluntary or involuntary, in the Armed Forces, the Army National Guard, the Air National Guard, full -time National Guard duty (under a federal, not a state, call-up), the commissioned corps of the Public Health Services and any other category of persons designated by the President of the United States. This continuation right is similar to, and runs concurrent with, your continuation right under COBRA (if any). The Group Medical Plan, Group Dental Plan, Health Flexible Spending Account, and Limited Scope Health Flexible Spending Account shall be operated consistent with USERRA and pursuant to USERRA policies and procedures contained in a separate document and is incorporated by reference into this Cafeteria Plan. This document is available to you upon request, at no charge.