Frequently Asked Questions (FAQ's) - COBRA Coverage

What is COBRA Coverage?
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) created the right to continue health coverage following certain Qualifying Events that would otherwise result in a loss of health coverage. Qualifying Events include voluntary or involuntary termination of
employment (reductions in force), divorce, and loss of status as an eligible dependent child.

Through COBRA, employees and/or their family members who are enrolled in health care coverage at the time of a Qualifying Event, are eligible to continue the health coverage they had in effect on the date of the Qualifying Event.

How do I Elect Coverage?
A personalized COBRA packet will be sent to the employee's home address within 44 days of the date of termination of employment. Please make sure your current home address is on file with the University.

Qualified Beneficiaries for purposes of COBRA include the employee, employee's spouse, and the employee's dependent child(ren) enrolled in the health plan on the date of the Qualifying Event. Each Qualified Beneficiary has an individual right to elect COBRA coverage - the employee does not need to enroll in order for his or her spouse and dependent child(ren) to beeligible.

Qualified Beneficiaries must elect COBRA coverage within 60 days from the last to occur of the following:

1. the date of the Qualifying Event, or
2. the date the University sends the notice offering COBRA coverage. If Qualified Beneficiaries do not make an election during the applicable election period, health care coverage will end according to the terms of the health plan.

How Long Can I Have COBRA Coverage?
An employee who has experienced a voluntary or involuntary termination of employment (including a reduction in force) may continue coverage through COBRA for up to 18 months.

When are COBRA Premium Payments Due?
If you elect COBRA coverage, you will be responsible to pay the full cost of coverage (including the portion previously paid by the employee's department), plus a 2% administration fee. The COBRA premiums, including this fee, will be listed on your "Notice of Right to Elect Continuation Coverage (COBRA)."

Coupons will be provided for premium payments; however, in the event you do not receive coupons, you still are responsible for making payments timely to avoid termination of coverage.

• Your first payment must be received by the University Benefits Department within 45 days of the date you elect COBRA coverage. Your first payment will include premiums due retroactive to the date you lost coverage as a result of your Qualifying Event. If your first payment is not received timely, COBRA coverage will not be effective and you will lose all rights to COBRA coverage.
  
  
• Payment for each subsequent period is due on the first day of each month. You will have a 30-day grace period to make each payment. If the COBRA premiums are not paid in full within the grace period, your COBRA coverage will terminate as of the end of the last period for which payment was received and you will lose all further rights to continue COBRA coverage.
  

* While The University currently intends to continue this Plan, The University is under absolutely no obligation to maintain the Plan for any given length of time. The University reserves the right to amend, modify or terminate this Plan or any portion thereof in any manner, at anytime, regardless of you or your dependent's health or treatment status. Such amendments, modifications, or termination of the Plan may result in the termination or modification of your coverage and/or the coverage for your dependents. If the Plan is amended, modified or terminated, you and/or your dependents are limited to eligible expenses incurred prior to the Plan's amendment, modification, or termination, which will be paid as provided under the terms of the Plan at the time such eligible expenses were incurred.

Under The American Recovery and Reinvestment Act of 2009, employees who lost their job involuntarily (for a reason other than gross misconduct) on or after September 1, 2008, may be eligible for a 65% reduction in their COBRA premiums for up to 9 months. Contact the University Benefits Department at (801) 581-7447.
Those eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction. The premium reduction for an individual ends upon the first to occur of the following events: (i) eligibility for other group coverage (or Medicare), (ii) after 9 months of the reduction, or (iii) the individual fails to make the premium payment within the grace period. Individuals paying reduced COBRA premiums must inform the University Benefits Department if they become eligible for coverage under another group health plan or Medicare. Information on the subsidy will be included in the COBRA information sent by the
University.

If an individual's modified adjusted gross income for the tax year in which the premium reduction is received exceeds $145,000 (or $290,000 for joint filers), then the amount of the premium reduction during the tax year must be repaid as an increase in income tax liability for the year. For taxpayers with adjusted gross income between $125,000 and $145,000 (or $250,000 and $290,000 for joint filers), the amount of the premium reduction that must be repaid is reduced proportionately. Individuals may permanently waive the right to premium reduction but may not later obtain the premium reduction if their adjusted gross income ends up below the limits. If you think that your income may exceed the amounts above, consult your tax preparer or contact the IRS at www.irs.gov.

May I Enroll Only my Spouse or Dependent?
Yes, even if the employee chooses not to enroll, COBRA coverage is available individually to each person who had coverage on the day before the Qualifying Event. The COBRA Election Agreement will list those individuals who are eligible.

Is COBRA Coverage the Same as the Coverage I had as an Active Employee?
Yes, the coverage is the same; the only difference is the cost and the length of time the coverage is available.

May I Enroll in Dental Coverage Only?
No, the only options are medical with dental or medical only.

May I Change to a Different Health Plan Option?
No, you must continue on the same health plan option. If you were currently enrolled with medical and dental coverage, you may drop dental and enroll in medical only. A change to your health plan option can only be made during the University's annual Open Enrollment. Open Enrollment is usually held in May each year and changes to coverage are effective July 1.

Will I Receive New I.D. Cards After I Enroll in COBRA?
Yes.

Can I Get the COBRA Election Form Before My Employment is Terminated?
No. We do not give out election forms until the Qualifying Event has been entered into the payroll system. COBRA coverage will begin retroactive to the date the individual(s) lost coverage as a result of the Qualifying Event, so they will not have a break in coverage.

If I Enroll in COBRA Will I have a Lapse in Coverage?
There will be no lapse in coverage. When you elect COBRA and make your initial payment prior to the due date, the coverage will be effective retroactive to the day you lost coverage.

Who Do I Call If I Have Additional Questions Regarding COBRA?
Contact the University Benefits Department at (801) 581-7447.