Guidelines for COBRA Coverage
Federal law requires employers with 20 or more employees to offer temporary continuing health coverage in some cases when an employee's group coverage ends. To help you comply with COBRA requirements, we can collect COBRA premiums and notify COBRA subscribers regarding ineligibility, rates and benefit changes, and expiration of the coverage period.
Please note that while we are prepared to assist employers to comply with COBRA, the final responsibility to meet the requirements of this law lies with each employer.
Please follow these guidelines for COBRA coverage:
- Submit the completed COBRA Enrollment form within 60 days from the date of the qualifying event. Payment of the first premium must be made within 45 days from the election date. Employers may choose to pay the COBRA premiums or have the qualified beneficiary pay.
- Premiums may not exceed 102% of the applicable premium amount. If an individual is disabled at the time of termination and the COBRA coverage is extended to 29 months, the premium may be increased to 150% for the 19th through 29th months of coverage.
- COBRA coverage may be terminated prematurely due to any of the following events:
- The company's health plan with UHA terminates
- If continuous monthly COBRA premiums are not received within 30 days of the due date
- The COBRA subscriber becomes covered under another medical plan that does not contain any exclusion or limitation with respect to any pre-existing condition he/she may have
- After the COBRA election, the subscriber becomes entitled to Medicare
For more information on COBRA, visit the Department of Labor website -
http://www.dol.gov/dol/topic/health-plans/cobra.htm
http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html