Contract Holder Obligations Under COBRA. Under federal law, an employer who employs twenty (20) or more employees on a typical business day during the prior calendar year must provide Members with the opportunity to elect COBRA continuation coverage in certain circumstances where coverage would otherwise terminate. Such Contract Holders and their group health plan's administrators (in certain cases, the employer may be the plan administrator) have the obligation to: (1) provide Members with notice of the opportunity to elect continuation coverage; and (2) administer the continuation coverage. The obligation to provide notice includes both general notification to Members of their right to elect continuation coverage and specific notification of the right to continuation coverage within a specific time period after the occurrence of the event which triggers the continuation coverage option. Contract Holder hereby acknowledges its legal obligations and agrees to abide by applicable legal requirements with respect to COBRA continuation coverage. Contract Xxxxxx also agrees to forward to HMO in a timely manner copies of any and all notices provided to Members regarding COBRA continuation coverage. Contract Holder Obligations Under Cal-COBRA. Under California law, a health care service plan that contracts with employers who employ two (2) through nineteen (19) eligible employees on a typical business day during the prior calendar year is required to provide Members with the opportunity to elect Cal-COBRA continuation coverage in certain circumstances where coverage would otherwise terminate. HMO will administer or contract for the administration of continuation coverage under Cal-COBRA. Nonetheless, Contract Holder must provide certain notices to HMO and to Members as described below. Contract Holder must notify HMO in writing of any employee who has a qualifying event defined in the Continuation and Conversion section, Item 2 – Cal-COBRA Continuation Coverage of the EOC within thirty (30) days of the qualifying event. Such notice must be separate from other communications from Contract Holder and must specifically reference Cal-COBRA. Notations of additions and/or deletions on monthly invoices will not constitute sufficient notice. Contract Holder must further provide written notice to HMO within thirty (30) days of the date the Contract Holder becomes subject to Section 4980B of the United States Internal Revenue Code or Chapter 18 of the Employee Retirement Income Security Act, 29 U.S.C. Section 116...
