APPENDIX H

CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 1985

(COBRA)

The parties to this contract intend that the following provisions are to comply with the regulations set forth in Title XXII of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

A. Employees covered by the health plan benefits as defined in Section D, may choose to continue health plan coverage for eighteen months for themselves, their spouse or dependents under the following circumstances:

1) When the employee is terminated for reasons other than gross misconduct:

2) When the employee's hours are reduced which results in a loss of health plan benefits.

B. The spouse of an employee covered by the Health Plan may choose to continue health plan coverage for a period of thirty-six months if he or she loses health plan coverage for any of the following reasons:

1) The death of the employee;

2) Divorce or legal separation from the employee;

3) The employee becomes eligible for Medicare.

C. The dependent child of an employee covered by the Health Plan may choose to continue health plan coverage for a period of thirty-six months, if he or she loses health plan coverage for any of the following reasons:

1) Death of the parent;

2) Parents' divorce or legal separation;

3) Parent becomes eligible for Medicare;

4) The dependent ceases to be a "dependent child" under the current health plan.

D. Health Plan coverage is defined as those benefits offered employees in Article X (Health, dental and vision, benefits only. Life insurance, Tax Sheltered Annuities and Long Term Disability are not considered health benefits requiring continued coverage under COBRA.)

E. The employee, spouse or dependent has 60 days from the date he or she would lose coverage to inform Norman C. Harris, Insurance Associates, that he or she desires continued health plan benefit coverage. If the employee, spouse or dependent fails to notify Norman C. Harris, Insurance Associates within 60 days, all group health insurance coverage will cease.

F. If the employee, spouse or dependent chooses continuation health plan benefits, the employee, spouse or dependent shall be responsible for payment of the applicable premium, plus an additional charge of (2) two percent the applicable premium amount.

G. Continuation of health plan coverage shall be revoked under any of the following circumstances:

1) The District no longer provides group health coverage to any of its employees;

2) The employee, spouse or dependent does not timely pay the premiums;

3) The employee, spouse or dependent becomes covered under another group health plan;

4) The employee, spouse or dependent becomes eligible for Medicare;

5) A spouse divorced from a covered employee subsequently remarries and is covered under the new spouse's group health plan.

H. Any modification of health plan benefits for bargaining unit members shall be applicable to any continued health plan coverage.

I. All other applicable provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), Title XXII, as they may be amended from time to time shall be adhered to by both the district and employees, and their spouses and dependents The District may take such action to modify such practices as may be necessary to ensure conformity with the provisions of and the regulations adopted pursuant to Title XXII of COBRA.