What is COBRA?
COBRA provides eligible employees, their covered spouse/domestic partner, and dependents who experience a loss of benefits the right to continue coverage under the group plan for a limited period of time, under the following circumstances:
Employee
- Status change: benefit eligible to non-benefit eligible
- Separation of employment
Spouse/domestic partner and/or dependents
- Dependent age-out (26)
- Death
- Divorce
- Loss of dependent eligibility
When does current coverage end?
Active employee medical, dental, vision, and EAP coverage will remain in effect through the end of the month in which the loss of coverage occurs. For example, if Pat were to separate employment effective March 4, benefits would remain in effect through March 31. Pat would be eligible for COBRA continuation effective April 1.
Health Flexible Spending Account (HFSA):
If eligible and active at the time of the loss of coverage event, HFSA participation will end last day of the month in which the loss of coverage occurs. In these cases, Optum, our COBRA third-party administrator, will review to determine continued eligibility. Reimbursement requests must be made within 90 days of your participation end date.
Health Savings Account (HSA):
If coverage is lost under the high deductible health plan, contributions to the HSA cannot continue. Funds remaining in the HSA account are eligible for future medical expenses.
Eligible participants have the option to keep their current Optum individual HSA account or elect to transfer or rollover HSA monies into another account with an HSA administrator of their choice.
Life Insurance:
The Standard, Salem Health’s life insurance administrator, sends a separate notification regarding porting or converting life insurance policies.
When will I receive my COBRA election form?
Optum, Salem Health’s third-party administrator, mails a COBRA continuation election form approximately two weeks following the date loss of coverage is reported in Salem Health’s system. The COBRA election form is sent to the mailing address on record with Human Resources. Eligible employees, spouses/domestic partners, and/or children can elect to continue medical, dental, vision, and EAP benefits by completing the COBRA continuation paperwork.
Important election dates
60 days – COBRA continuation coverage must be elected within 60 days from the date the election form is mailed.
45 days – Premium payments need to be submitted to Optum within 45 days from the date that the COBRA election form is received.
- Once premiums are paid, coverage is retroactive to the first of the month following the conclusion of previous coverage to avoid any gap.
Premiums
Qualified individuals must pay monthly premiums to Optum for coverage continuation.
How long does COBRA last?
In most cases, COBRA can continue up to a maximum of 18 months. In certain circumstances, COBRA can last up to 36 months. Contact the COBRA administrator for information regarding coverage eligibility.
