TERMINATION OF COVERAGE | Plan Provisions and Taxation

In the absence of any provisions for continuation or conversion, group medical expense coverage of an employee generally ceases on the earliest of the following:

The date on which employment terminates (In some plans, coverage ceases on the last day of the month in which employment terminates.)

The date on which the employee ceases to be eligible

The date on which the master contract terminates

The date on which the overall maximum benefit of major medical coverage is received

The end of the last period for which the employee has made any required contribution

Coverage on any dependent usually ceases on the earliest of the following:

The date on which he or she ceases to meet the definition of dependent

The date on which the coverage of the employee ceases for any reason except the employee's receipt of the overall maximum benefit

The date on which the dependent receives the overall maximum benefit of major medical coverage

The end of the last period for which the employee has made any required contribution for dependent coverage

However, coverage often continues past these dates because of federal legislation or employer practices.