Benefits Continuation (COBRA) The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under Wilkinson/Ace's health plan when a "qualifying event" would normally result in the loss of eligibility. Some common qualifying events are resignation, termination of employment, or death of an employee; a reduction in an employee's hours or a leave of absence; an employee's divorce or legal separation; and a dependent child no longer meeting eligibility requirements. Under COBRA, the employee or beneficiary pays the full cost of coverage at Wilkinson/Ace's group rates. Wilkinson/Ace provides each eligible employee with a written notice describing rights granted under COBRA when the employee becomes eligible for coverage under Wilkinson/Ace's health insurance plan. The notice contains important information about the employee's rights and obligations. Policy No. 313