Continuation Coverage Law and Legal Definition
The term continuation coverage refers to the extended coverage provided under the group benefit plan in which an eligible employee or eligible dependent is currently enrolled. For example, Consolidated Omnibus Budget Reconciliation Act (COBRA) provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. COBRA continuation coverage is a continuation of plan coverage upon the occurrence of a qualifying event that would cause an individual to lose his or her health care coverage. COBRA continuation coverage is offered to each person who is a qualified beneficiary after the happening of the qualifying event.
“Continuation coverage is defined under COBRA as coverage identical to the coverage provided under the plan to similarly situated beneficiaries who have not lost coverage.”[Gibbs v. Anchorage Sch. Dist., 1995 U.S. Dist. LEXIS 6290 (D. Alaska 1995)]