COBRA Continuation Coverage
COBRA is a federal law that requires most employers sponsoring group health plans to offer employees and their families the opportunity for a temporary extension of health coverage (called "continuation coverage") when their coverage under the employee group health plan ends due to a Qualifying Event.
A Qualifying Event may be:
- termination of employment or reduction in hours of employment;
- employee's death;
- employee's divorce; or
- dependent ceasing to be eligible under the Plan
Event 1 will allow continuation of coverage up to 18 months.
Events 2, 3, and 4 will allow continuation of coverage up to 36 months.
It is the employee's responsibility to notify the benefits office within 60 days of a divorce or of a dependent ceasing to be eligible; otherwise, continuation of coverage is not possible.
When a Qualifying Event occurs and causes loss of coverage, COBRA continuation coverage is offered to the person(s) losing coverage. COBRA is the same coverage in which you were enrolled at the time you lost coverage. You will pay the full cost (including any portion formerly paid by the district) of the plans you choose to continue, plus a 2% administrative fee. COBRA participants have the same annual open enrollment privileges as employees.
COBRA Coverage may cease if:
- Premiums are not paid in a timely fashion;
- You become covered under a new health plan (without pre-existing limits);
- You request termination of COBRA coverage;
- You become entitled to Medicare (possible extension for dependents); or
- You reach the end of your period of COBRA coverage
A COBRA General Notice is sent to employees' home addresses upon enrollment in the Plan, as required by law.
COBRA enrollment packets are mailed automatically when we are notified of a Qualifying Event. Included in the COBRA packet will be your "Certificate of Creditable Coverage" as required by HIPAA law. You may be required to provide this certificate to your new employer's plan.
This is merely a summary of COBRA provisions and is not intended to be all-inclusive.