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Home > Administrative Information > Your Rights Under COBRA
You and your dependents covered under the group health (including dental plan), have the option to purchase a temporary continuation of health care coverages at full group rates, plus a 2% administrative charge in certain instances when your coverage would otherwise end. This is called COBRA coverage. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of 1985.
COBRA Participation
If one of the circumstances listed in the chart below causes you or a dependent to lose health care coverage, you may continue your medical (including prescription drug and vision care) and dental coverage for you and your eligible dependents. If you adopt or have a child while covered by COBRA, that child is also a qualified beneficiary entitled to COBRA coverage.
Continued coverage is available for a maximum of 18, 29, or 36 months, depending on the circumstances outlined in the chart below. The maximum continuation period, if multiple circumstances should occur, is a total of 36 months. For example, if you terminate employment and then die, your dependents' coverage may continue for 36 months from your termination date.
| COBRA Continuation Period |
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| Circumstances | Maximum Continuation Period |
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| | Spouse | Child |
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| You die | 36 months* | 36 months* |
| You and your spouse legally separate or divorce | 36 months | 36 months |
| You become entitled to Medicare | 36 months | 36 months |
| Your child no longer qualifies as a dependent | n/a | 36 months |
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Choosing COBRA
Here are some things to keep in mind about COBRA continuation:
You and your eligible dependents have 60 days after your COBRA notice to elect continued participation. You will have an additional 45-day period to pay any make-up contributions you missed from the first day of the COBRA coverage.
- If COBRA is elected, the coverage previously in effect will generally be continued.
- Coverage will be effective as of the date of the qualifying life event, unless you waive COBRA coverage and subsequently revoke your waiver within the 60-day election period. In that case, your election coverage begins on the date you revoke your waiver.
- You may change coverage during annual enrollment or if you experience a qualifying life event, as described in the About Your Benefits section.
- You may enroll any newly eligible spouse or child under the usual rules.
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Cost of Participation
COBRA participants must pay monthly premiums for their coverage:
- For medical and dental coverage, premiums are based on the full group rate per covered person set at the beginning of the year, plus 2% to cover administrative costs.
Notification
If your dependents lose coverage due to divorce, legal separation, or loss of dependent status, you (or a family member) must notify the Benefit Plans Office within 60 days of the event so that COBRA can be offered and your election rights can be mailed to you. Also, to extend coverage beyond 18 months because of disability, notice of the Social Security Administration's determination must be provided within 60 days after you receive that determination and before the end of the initial 18-month period.
When COBRA Ends
COBRA coverage will end before the maximum continuation period if:
- a person who was covered under COBRA becomes covered under another group health plan not offered by the Company (providing the other plan does not have pre-existing condition limitations affecting the covered person; if the other plan has such limitations, COBRA coverage will end when those limitations expire)
- you or your eligible dependent becomes entitled to Medicare after you elect COBRA
- the first required premium is not paid within 45 days, or any subsequent premium is not paid within 30 days of the due date
or
- the Company's group health plans are terminated.
Last updated: Thursday April 21 2005
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