What does it mean to provide alternate coverage and why is it important?
Many employers and their plans continue coverage under the plan for reasons separate from COBRA. These situations are referred to as alternate coverage. Alternate coverage can be coverage provided pursuant to: 1. State or local law; 2. Collective bargaining agreement; 3. Severance agreement; 4. Retirement agreement; or 5. Procedure or provision contained in the plan itself. If the alternate coverage (as described above) does not satisfy all the requirements of COBRA or the amount that the group health plan requires be paid for the alternate coverage is more than the amount required to be paid by similarly situated non-COBRA beneficiaries for the coverage that the Qualified Beneficiary can elect to receive as COBRA coverage, then the plan covering the Qualified Beneficiary immediately prior to the Qualifying Event must offer the Qualified Beneficiary receiving the alternate coverage the opportunity to elect COBRA. If however, the Qualified Beneficiary rejects COBRA in favor of the alter
