Benefits Highlights
COBRA

In the future, your employment status may change — but your need for benefits may not. That's why it's important to know that COBRA exists to help you continue your medical or dental insurance or Health Care FSA in certain situations. Find out:

• What COBRA/Continuation of Coverage Is
• When You Can Choose to Continue Your Medical or Dental Coverage and How Long It Lasts
• When You Can Choose Flexible Spending Account Coverage and How Long It Lasts
• Cost of Coverage
• How to Elect
• How Often You Can Change Your Continuation of Coverage
• When Your Continuation of Coverage Ends

 What COBRA/Continuation of Coverage Is

"COBRA" stands for the Consolidated Omnibus Budget Reconciliation Act of 1985. This law gives you and your covered dependents the right to continue your medical insurance coverage, dental insurance coverage, and/or Health Care Flexible Spending Account participation if you lose your benefits under certain circumstances.

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 When You Can Choose to Continue Your Medical or Dental Coverage and How Long It Lasts

The chart below describes the circumstances in which you and/or your dependents can choose "Continuation of Coverage" as mandated by COBRA and how long continued coverage for medical and/or dental insurance can last. Generally, Continuation of Coverage lasts up to 18, 29 or 36 months, depending on the circumstances in which you lost coverage. If multiple circumstances apply, the maximum period that coverage can continue is a total of 36 months. You may lose coverage because of a qualifying event, which may include divorce, legal separation, death of a covered employee, reduction in work hours or termination.

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 When You Can Choose Flexible Spending Account Coverage and How Long It Lasts

You may be eligible to continue your Health Care Flexible Spending Account (HCFSA) coverage through "Continuation of Coverage" as mandated by COBRA if:

• You're participating in a HCFSA, you have money remaining in your account, and your employment is terminated, or

• You're participating in a HCFSA, you have money remaining in your account, and you change from a benefits-eligible status to a benefits-ineligible status.

Your regular HCFSA participation will terminate on the day your employment or benefits-eligible status terminates. Then, if you decide to continue your coverage through "Continuation of Coverage" as mandated by COBRA, your HCFSA resumes as of your termination date or benefits-ineligible date. You will be billed on a monthly basis going forward.

For example, if you leave the University or become benefits-ineligible on August 14, you can be reimbursed for claims incurred through August 14. If you elect to continue your HCFSA through COBRA, you can continue to be reimbursed for claims you incur during that calendar year, from August 15 through March 15.

Your Continuation of Coverage for the HCFSA ends at the end of the calendar year or when you stop paying the premiums, whichever occurs first.

Dependent care spending account participation cannot be continued.

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 Cost of Coverage

Under "Continuation of Coverage" as mandated by COBRA, you can maintain your medical and/or dental insurance coverage at the rate the University pays for benefits plus a 2% administrative fee — which is generally less than the rate you would pay as an individual buyer.  However, this rate is more than what you normally pay as an employee because the University does not subsidize medical and/or dental coverage insurance provided through "Continuation of Coverage." Your cost equals the:

Cost of continued coverage at full group rate + additional 2% administrative fee

When you elect to continue your Health Care Flexible Spending Account participation, your contributions for the remainder of the calendar year are made on an after-tax basis, and you must pay the additional 2% administrative fee.

COBRA Continuation of Coverage premiums must be paid each month. To review current Continuation of Coverage rates, click here.

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 How to Elect

The steps you need to take vary slightly, based on how you become eligible for Continuation of Coverage. If your qualifying event is a reduction in hours or a termination of employment, you will be mailed information by WageWorks, the outside administrator, with instructions on how to elect "Continuation of Coverage."

However, for any other qualifying event, you or a family member need to notify the Benefits Office within 31 days of either the event or the date you lose coverage because of the event (whichever is later). You will be mailed information by WageWorks, the outside administrator, with instructions on how to elect "Continuation of Coverage."

You and your eligible dependents have 60 days from the date you receive your instructions to notify WageWorks that you want continued coverage.

If you elect "Continuation of Coverage" through COBRA, the coverage begins the month after the date of your qualifying event, and you will be billed retroactively from that date.  For example, if you leave the University on May 20, your coverage as an active employee will continue through May 31. If you choose to continue coverage within 60 days of receiving your "Continuation of Coverage" notice, your continued coverage begins June 1, and you'll be billed retroactively from June 1.

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 How Often You Can Change Your Continuation of Coverage

Generally, you can change your Continuation of Coverage through COBRA:

• During Open Enrollment (except for the Health Care Flexible Spending Account); or

• Within 31 days of a qualifying life event such as marriage, divorce, birth or adoption of a child, etc.

Verification of relationship is required for any dependent being added for the first time to your coverage. Documentation may include a marriage certificate or domestic partnership statement to add a new spouse or domestic partner. Documents for a new dependent child may include a birth certificate or adoption papers, or other appropriate legal documents may be provided. Return a copy of the required documents to WageWorks within 31 days of the qualifying life event.

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 When Your Continuation of Coverage Ends

Continuation of Coverage as mandated by COBRA will end before the maximum continuation period if:

• After the date Continuation of Coverage is elected, you or any of your dependents become covered under another group medical or dental plan. You lose coverage only if you obtain alternative coverage of the same type such as medical and/or dental. For example, if you have elected Continuation of Coverage for medical insurance, you do not lose it if you obtain dental insurance through your spouse's employer.

• After the date Continuation of Coverage is elected, you or your dependent become entitled to Medicare. (Covered dependents who are not entitled to Medicare can continue coverage under COBRA until the maximum continuation period is reached.)

• You or your dependent fail to make timely monthly payments.

• The University terminates the plan under which you elected Continuation of Coverage as mandated by COBRA.

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