McKesson 2005 Annual Report Download - page 192

2. Benefits Available During COBRA Continuation Coverage.
An individual who elects COBRA Continuation Coverage under this Section I. shall continue his or her status as an Executive or a
Dependent under the Plan, except that a Dependent who individually elects COBRA Continuation Coverage under Section I.4. shall be treated
as an Executive. Such individuals are entitled to the same rights and benefits available to individuals who became Executives or Dependents
pursuant to Sections C or D, except to the extent otherwise provided in this Section I.
a. Medical Benefits. An Executive or an individual who is treated as an Executive may elect COBRA Continuation Coverage for medical
and prescription drug coverage.
b. Added Dependents. An Executive or an individual who is treated as an Executive may add an individual as a Dependent during a
period of COBRA Continuation Coverage pursuant to the provisions of Sections E.2. and E.3. Any individual so added is entitled to benefits
under the Plan until the earlier of the date the Executive’s COBRA Continuation Coverage ends or the date the individual ceases to be a
Dependent.
c. Maximum Benefits.
i. Lifetime Maximum Benefit. Any amounts paid under the Plan that counted towards an individual’s Lifetime Maximum Benefit
under Section G. before a Qualifying Event, shall apply against such individual’s Lifetime Maximum Benefit after the Qualifying Event.
ii. Annual Maximums. Any amounts paid under the Plan that counted towards any annual maximum payable under the Plan under
Section G. before a Qualifying Event are counted toward the individual’s annual maximum after the Qualifying Event.
d. Annual Enrollment Periods. Any individual who elects COBRA Continuation Coverage under Section I.4.a. is entitled to change
coverage during the annual enrollment period to any option that would be available to such individual immediately before COBRA
Continuation Coverage became effective for such individual. Each individual who is an Executive or covered Dependent pursuant to this
Section I. (other than an individual who was added as a Dependent under Section I.2.b. above) may make such election on an individual basis.
e. Certificate of Group Health Plan Coverage. An individual covered under Section I.3. will receive a Certificate of Group Health Plan
Coverage upon losing COBRA Continuation Coverage for any reason. This Certificate offers proof that the individual had been covered under
the McKesson Corporation Executive Medical Plan, and it may allow the individual to receive credit toward a new health plan’s waiting period
for preexisting conditions.
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