Continued Medical Benefits Coverage Clause Samples

Continued Medical Benefits Coverage. During the Severance Period, the Company shall provide Executive, and, if any, Executive’s spouse and dependents with medical benefits coverage substantially similar to the coverage in effect on the effective date of termination. After the Severance Period, Executive and his dependents will have the opportunity under the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”) to elect COBRA continuation coverage. If elected in a timely manner, COBRA coverage generally will commence as of the first day of the next calendar month after the end of the Severance Period and will end on the last day of the 18th month thereafter (unless an earlier end date or an extension is required under COBRA).

Continued Medical Benefits Coverage. During the twenty-four months following the Termination Date (such period, the “Severance Period”), Executive and Executive’s dependents will have the opportunity under the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”) to elect COBRA continuation coverage. If Employee so elects and pays for COBRA coverage in a timely manner, the Company shall reimburse Executive for the cost of purchasing COBRA coverage through the end of the Severance Period (or until such earlier date as Executive and Executive’s dependents cease to receive COBRA coverage) and any such reimbursement shall be imputed as income to the Executive.

Continued Medical Benefits Coverage. In addition to any statutory COBRA rights, for the period beginning on the date of his separation from service and ending the earlier of (a) the 3rd anniversary of his separation from service or (b) the date on which he accepts employment with or provides service to any other business or entity, the Company shall provide Executive, and if applicable, spouse and any dependents, with medical benefits coverage substantially similar to the coverage being offered at the time to its executives (“Coverage”) ,the earlier of (a) or (b) being, the “Benefits Termination Date”. The Executive shall participate in the medical benefits program at the cost share in place on the effective date of separation. Following the Benefits Expiration Date, Executive, and if applicable, spouse and any dependents, shall be permitted to continue the Coverage at Executive’s sole expense for the remainder of the Executive’s life the “Life Coverage Period”). If, during the Life Coverage Period, Executive accepts employment with, or provides service to, in any capacity, any other business or entity, upon commencement of such employment or services, the entitlement of the Executive and then eligible dependents to participate in the Coverage plan shall terminate automatically. Additionally, when the Executive becomes eligible for Medicare coverage (or its successor government plan), the Coverage shall become secondary to Medicare.

Continued Medical Benefits Coverage. During the 60-day period following the Company’s delivery of the notice required by the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”), Executive will have the opportunity to elect continuation coverage under COBRA or, if applicable, Pennsylvania “mini-COBRA” for himself and his dependents for the Severance Period (as defined below). If elected in a timely manner, the Company shall reimburse Executive (a) for the time period extending from the Termination Date until COBRA expires, for the full cost of purchasing COBRA coverage and (b) for the time period extending from the date on which COBRA expires through the end of the Severance Period, for the cost of replacement coverage up to the full cost of purchasing COBRA coverage (provided that, in either case, no reimbursement shall be paid after such earlier date as Executive and his dependents participate in coverage under another employer-based group health plan).

Continued Medical Benefits Coverage. During the Severance Period, Executive and his dependents will have the opportunity under the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”) to elect COBRA continuation coverage. If elected in a timely manner, the Company shall reimburse Executive for the full cost of purchasing COBRA coverage until the end of the Severance Period (or until such earlier date as Executive and his dependents cease to receive COBRA coverage). In addition, for the period beginning on the date of his separation from service and ending the earlier of (a) the third anniversary of his separation from service or (b) the date on which he accepts employment with or provides service to any other business or entity, the Company shall provide Executive, and if applicable, spouse and any dependents, with medical benefits coverage substantially similar to the coverage being offered at the time to its executives (“Coverage”), the earlier of (a) or (b) being, the “Benefits Termination Date”. The Executive shall participate in the medical benefits program at the cost share in place on the effective date of separation. Following the Benefits Expiration Date, Executive, and if applicable, spouse and any dependents, shall be permitted to continue the Coverage at Executive’s sole expense for the remainder of the Executive’s life the “Life Coverage Period”). If, during the Life Coverage Period, Executive accepts employment with, or provides service to, in any capacity, any other business or entity, upon commencement of such employment or services, the entitlement of the Executive and then eligible dependents to participate in the Coverage plan shall terminate automatically. Additionally, when the Executive becomes eligible for Medicare coverage (or its successor government plan), the Coverage shall become secondary to Medicare.

Continued Medical Benefits Coverage. Employee and his dependents will have the opportunity under the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”) to elect COBRA continuation coverage. If elected in a timely manner, the Company shall reimburse Employee for the full cost of purchasing COBRA coverage until the end of the Severance Period (or until such earlier date as Employee and his dependents cease to receive COBRA coverage). Notwithstanding the foregoing, if the Company determines, in its sole discretion, that reimbursement of the COBRA premiums would result in a violation of the nondiscrimination rules of Section 105(h)(2) of the of the Internal Revenue Code of 1986, as amended (the “Code”) or any statute or regulation of similar effect (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of reimbursing the COBRA premiums, the Company, in its sole discretion, may elect to instead pay Employee a fully taxable lump sum cash payment equal to the COBRA premiums for the Severance Period regardless of whether Employee’s elects COBRA continuation coverage, which payment shall be paid within sixty (60) days of the Termination Date subject to applicable tax withholdings. Employee may, but is not obligated to, use such payment toward the cost of COBRA premiums.