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Form #940

Additional COBRA Clauses

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Additional COBRA clauses.

When drafting separation agreements, you may want to include one of these four COBRA health insurance clauses:

I.

COBRA insurance coverage shall be provided for the _________[wife or husband] at the expense of the _________[husband or wife] for a period not to exceed three years, the remarriage of the _________[wife or husband], or the _________[wife or husband]'s obtaining medical insurance, comparable in nature to the existing insurance, at no cost to _________[husband or wife] through _________[wife or husband]'s employment, whichever occurs first. This COBRA provision shall not be construed as maintenance and shall have no tax consequences.

II.

The _________[husband or wife] shall pay an additional amount to the _________[husband or wife] as maintenance for _________[husband or wife]'s support, but specifically designated as a contribution toward the _________[husband or wife]'s continuing health insurance coverage under COBRA, in an equal amount to 50 percent of the cost of that continued coverage for a period of three years after entry of the judgment. It is anticipated that this amount will be approximately $_____ weekly to equal exactly half of the _________[husband or wife]'s cost for continuing health insurance coverage under COBRA through the _________[husband or wife]'s employer. These payments will continue for a maximum of three years, shall not be modifiable for any reason whatsoever except to correspond to the exact amount of 50 percent of the COBRA premium, and shall terminate prior to the expiration of three years upon the death or remarriage of the _________[husband or wife], or if the _________[husband or wife] becomes employed and has health insurance benefits available to _________[him or her] through that employment, whichever occurs first. It is the intent of the parties that these payments, because they are maintenance for the support of the _________[husband or wife], shall be taxable to the _________[husband or wife] and deductible from the _________[husband or wife]'s income.

III.

The _________[husband or wife] shall maintain health care insurance benefits for the _________[husband or wife], at _________[husband or wife]'s expense, for the maximum three-year period allowed under COBRA. That obligation, however, will terminate if the _________[husband or wife] becomes employed on a full-time basis prior to the expiration of three years and is offered health insurance as a benefit of that employment.

IV.

The _________[husband or wife] shall secure group medical insurance coverage for the _________[husband or wife], identical to that covering _________[husband or wife] during the marriage through _________[husband or wife]'s employer, under the provisions of COBRA for a period of _________[time period] from the date of entry of this judgment or until the _________[husband or wife] becomes eligible for group medical insurance coverage through the _________[husband or wife]'s own employer, whichever occurs first. The _________[husband or wife] shall make all premium payments required to maintain the COBRA benefit in full force and effect.



 
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Terms Of Use

Submissions to this site, including any legal or business forms, posts, responses to questions or other communications by contributors are not intended as and should not be construed as legal advice. You are strongly encouraged to consult competent legal council before engaging in any action based upon content contained on this site.

These downloadable forms are only for personal use. Retransmission, redistribution, or any other commercial use is prohibited. This includes reposting forms from this site to another site offering free legal or other document forms for download.

Please note that the donator may have included different usage terms regarding this form, and you agree to abide by these terms. It is highly recommended that you have a licensed attorney review any legal documents for which you are searching in order to make sure that your needs are being properly and completely satisfied.

Your use of this site constitutes your acceptance of our terms of use and your agreement to hold this site, its officers, employees and any contributors to this site harmless for any damage you might incur from your use of any submissions contained on this site. If you do not agree to the above terms, please do not proceed.

These forms are provided to assist business owners and others in understanding important points to consider in different transactions. They are offered with the understanding that no legal advice, accounting, or other professional service is being offered by these documents or on this website. Laws vary in the different states. Agreements acceptable in one state may not be enforced the same way under the laws of another state. Also, agreements should relate specifically to the particular facts of each situation. Therefore, it is important to consult legal counsel whenever utilizing these forms. The Forms are not a substitute for legal advice YourFreeLegalForms.com is not engaged in recommending or referring members on the site or making claims about the competence, character or qualifications of its participating members.
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Comments

submitted 11/4/2008
by DavidMarshall  

"There has been an inexorable trend in the field of medical insurance over the last decade. Premiums have risen and the extent of the cover has declined. Today, many people find private insurance unaffordable. This makes COBRA all the more important. The "Consolidated Omnibus Budget Reconciliation Act" is a federal law that applies to employers that have a health plan and have 20 or more employees. It gives those who lose their jobs the chance to continue cover for themselves and their dependants for up to three years. In the event of separation or divorce, it is vital that the parties agree what shall happen to the COBRA rights, hence the choice between these clauses. Always make sure you protect your interests."
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