June 1, 2003

Dear Employee:

You and your eligible dependents may continue participation in the college’s group medical plan even though certain events occur which would otherwise cause loss of coverage. This continued coverage is provided by the consolidated Omnibus Budget Reconciliation Act (COBRA), a federal law enacted in 1986. This notice is intended to inform you of your rights and responsibilities under the continuation coverage provisions of the law.

1. Your coverage can be extended up to 18 months if one of the following “qualifying events” occurs:

Ø Your employment terminates for any reason other than gross misconduct

Ø Your working hours are reduced to a level at which you would no longer be eligible for benefits.

2. Coverage for your eligible dependents can be extended up to 36 months if one of the following qualifying events occurs:

Ø They are covered under the group health plan and you die while still employed.

Ø You or your spouse become legally separated or divorced.

Ø A dependent child reaches maximum age for coverage.

Ø Your spouse or dependents are under age 65 when you become eligible for medicare and are no longer an active employee.

3. The full 18 or 36 month extension will not apply if:

Ø All employer-provided medical plans are terminated.

Ø You do not pay your required premium in a timely manner

Ø You or your dependents become an employee covered by another group medical plan.

Ø Your former spouse remarries and becomes covered under another group medical plan.

Ø A dependent becomes eligible for medicare

You or a family member must notify the Human Resources Office in writing in the event of a qualifying event outlined above. Please note that prompt notification is important. You will have sixty days from the date you would otherwise lose coverage to submit a COBRA application. The cost of the coverage will be the college’s cost, plus a 2% administrative fee. While the college can provide you with the COBRA application, all billing and enrollment will be done directly with Community Blue.

If you have any questions about your rights or responsibilities under COBRA legislation, please do not hesitate to contact me.

Sincerely,

Dale F. Wright

Executive Director

Human Resources & Budget