Continuation of Coverage Property of Bind Benefits, Inc., d/b/a Surest. All rights reserved © 2026. 72 • Pre-Qualifying Event Medicare Extension. The 18-month continuation period may be extended if the employee became entitled to (actually covered under) Medicare prior to the employee’s termination of employment (other than for gross misconduct) or a reduction in hours. Qualified beneficiaries other than the employee are entitled to the greater of: − 18 months measured from the qualifying event. − 36 months measured from the date of the employee’s Medicare entitlement. • 36 months. For qualifying events other than termination of employment (other than for gross misconduct) or a reduction in hours, the continuation period is 36 months measured from the date coverage would otherwise be lost because of the qualifying event. • Second Qualifying Events. If during the initial 18-month continuation period (or during an extension of that period for disability or for pre-termination Medicare entitlement) a second qualifying event occurs (e.g., death of employee, loss of dependent status) that would have caused the qualified beneficiary to lose coverage under the Surest Plan had the first qualifying event not occurred, the continuation period for the particular qualified beneficiaries affected by the second qualifying event may be extended to 36 months. Under no circumstances may the total continuation period be greater than 36 months from the date coverage would otherwise be lost because of the original qualifying event that triggered the continuation coverage. Type of Coverage Initially, continuation coverage will be the same coverage as immediately preceding the qualifying event. Thereafter, continuation coverage must be identical to the coverage provided to similarly situated employees and dependents that have not experienced a qualifying event. Qualified beneficiaries who have elected COBRA will be given the same opportunity available to similarly situated active employees to change their coverage options or to add or eliminate coverage for dependents at Open Enrollment. In addition, Special Enrollment Rights under HIPAA will apply to those who have elected COBRA. Under the law, a person electing continuation coverage may be required to pay all or part of the cost of continuation coverage. You will receive additional information regarding the cost requirements following the occurrence of a qualifying event. The amount charged cannot exceed 102% of the cost to the plan providing the coverage. The amount charged may be increased to 150% for the months after the 18th month of continuation coverage when the additional months are due to a disability under the Social Security Act. Payment is generally due monthly. Payment is considered “made” on the postmark date. The law provides that continuation coverage shall automatically end before the end of the maximum continuation period for any of the following reasons: • The employer no longer provides group health coverage to any of its employees. • The premium for continuation coverage is not paid on time (including any applicable grace period).