COBRA; Pay in Lieu of Continued Employee Benefits Clause Samples
The "COBRA; Pay in Lieu of Continued Employee Benefits" clause outlines how an employer will address an employee's right to continue health insurance coverage after employment ends, as required by the Consolidated Omnibus Budget Reconciliation Act (COBRA). Typically, this clause specifies whether the employer will provide direct payment to cover the cost of continued benefits or instead offer a lump-sum payment in place of ongoing coverage. For example, rather than maintaining the employee's health insurance, the employer might pay an amount equivalent to the cost of COBRA premiums for a set period. This clause ensures clarity regarding post-termination benefits and helps both parties understand their rights and obligations, thereby preventing disputes over continued health coverage.
COBRA; Pay in Lieu of Continued Employee Benefits. Continuation of COBRA or a cash benefit, in both cases on the same terms as set forth in Section 2(b) above, for a period of twelve (12) months following the Executive’s Separation or, if earlier, until Executive is eligible to be covered under another substantially equivalent medical insurance plan by a subsequent employer.
COBRA; Pay in Lieu of Continued Employee Benefits. The Company or its successor shall provide the Executive with continuation of COBRA benefits or a cash benefit, in both cases on the same terms as set forth in Section 2(b) above, for the same period that the Executive is paid severance benefits pursuant to Section 3(a) following the Executive’s Separation or, if earlier, until Executive is eligible to be covered under another substantially equivalent medical insurance plan by a subsequent employer.
COBRA; Pay in Lieu of Continued Employee Benefits. If Executive timely elects continued coverage under COBRA, then the Company shall pay a lump sum cash payment for continuation of COBRA, on the same terms as set forth in Section 3(b) above, for the same period that the Executive is paid severance benefits pursuant to Section 4(a) following the Executive’s Separation. Executive shall be entitled to an additional gross-up payment to account for the fact that such COBRA premium amounts are paid on an after-tax basis.
COBRA; Pay in Lieu of Continued Employee Benefits. The Company or its successor shall provide the Executive with continuation of COBRA benefits or a cash benefit, in both cases on the same terms as set forth in Section 1(b) above, for the same period that the Executive is paid severance benefits pursuant to Section 2(a) following the Executive’s Separation or, if earlier, until Executive is eligible to be covered under another substantially equivalent medical insurance plan by a subsequent employer; provided, however, that such benefit shall in all cases be reduced by the amount of any benefits provided pursuant to the terms of the American Rescue Plan Act of 2021.