COBRA Continuation of Coverage
On this page:
- About COBRA
- Medical, Dental, and Vision
- Flexible Spending Accounts (FSA)
- COBRA Cost
- Applying for COBRA
- Making Changes
- Ending Coverage Early
About COBRA
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, vision insurance coverage, and/or Health Care Flexible Spending Account participation if you lose your benefits under certain circumstances.
Medical, Dental, and Vision
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, dental, and/or vision insurance can last. 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.
Reason Coverage Is Lost |
Employee |
Spouse |
Child |
---|---|---|---|
Employee loses coverage |
18 months |
18 months |
18 months |
Employee terminates employment with |
18 months |
18 months |
18 months |
Employee and spouse legally separate or divorce |
N/A |
36 months |
N/A |
Employee or dependent is disabled |
29 months |
29 months |
29 months |
Disabled employee becomes entitled to |
N/A |
36 months |
36 months |
Child no longer qualifies as a dependent |
N/A |
N/A |
36 months |
Employee dies: Dental |
N/A |
36 months |
36 months |
Employee dies: Medical |
N/A |
36 months |
36 months |
Flexible Spending Accounts (FSA)
You can continue your participation in your Health Care Flexible Spending Account through Continuation of Coverage if:
- You are participating in a Health Care FSA, you have money remaining in your account, and your employment is terminated, or
- You are participating in a Health Care FSA, you have money remaining in your account, and you change from a benefits-eligible status to a benefits-ineligible status.
Your regular Health Care FSA participation will end on the day your employment or benefits-eligible status terminates. If you elect to continue your participation through Continuation of Coverage, your Health Care FSA resumes as of your termination date or benefits-ineligible date. You will be billed on a monthly basis.
Your Continuation of Coverage for the Health Care FSA ends at the end of the calendar year or when you stop paying the monthly payments, whichever occurs first.
Special Note: Dependent care spending account participation cannot be continued through COBRA.
COBRA Cost
Under Continuation of Coverage, you can maintain your medical, dental, and/or vision insurance coverage at the rate the University pays for benefits plus a 2 percent administrative fee.
When you elect to continue your Health Care FSA participation, your contributions for the remainder of the calendar year are made on an after-tax basis.
COBRA Rates All Employees (PDF)
Applying for COBRA Continuation of Coverage
If your qualifying event is a reduction in hours or termination of employment, you will be mailed information by Chard Snyder, the plan administrator, with instructions on how to elect Continuation of Coverage.
For any other qualifying event, you or a family member need to notify Human Resources within 30 days of either the event or the date you lose coverage because of the event (whichever is later). You will be mailed information by Chard Snyder, the plan 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 Chard Snyder 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. Contact Chard Snyder at 888-993-4646 regarding questions about COBRA coverage after you have applied.
Making Changes to COBRA Continuation of Coverage
You may change your Continuation of Coverage:
- During Open Enrollment (except for the Health Care Flexible Spending Account); or
- Within 30 days of a qualifying life event such as marriage, divorce, birth or adoption of a child, etc.
Chard Snyder will require documentation for certain changes. Return a copy of the required documents to Chard Snyder within 30 days of the qualifying life event.
Ending COBRA Continuation of Coverage Early
Examples of when Continuation of Coverage will end before the maximum continuation period, include:
- 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.
For more information, contact Chard Snyder at 888-993-4646 or email them at Cobra@chard-snyder.com.