The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose health benefits, the right to choose a temporary continuation of health benefits provided by their group health plan. A COBRA-eligible employee must be enrolled in the company-sponsored group health insurance plan on the day before the qualifying event occurs. Qualified individuals electing continuation coverage (COBRA) are required to pay 100% of the premium (both the employer and employee share of the cost), plus a small administrative fee.
QUALIFYING EVENTS FOR COBRA
- Voluntary or involuntary job loss (except in cases of gross misconduct)
- Decrease in the number of hours of employment resulting in the loss of employer provided insurance coverage
SPOUSES - In addition to the above two qualifying events for employees, their spouses may qualify for COBRA coverage if the following conditions are met:
- Covered employee becomes entitled to Medicare
- Divorced or legally separated from the covered employee
- Death of the covered employee
DEPENDENT CHILDREN - Qualifying events for dependent children are generally the same as for the spouse with one addition:
- Loss of dependent child status per the plan rules
If you experience a "qualifying event" Infinisource, a contracted Third Party Administrator (TPA), will mail each eligible employee a written notice describing the rights granted under COBRA, along with important information about the employee's enrollment and obligations. If you are enrolled in COBRA, and there will be an increase in premium rates, you will be notified sixty days (60) prior to any change in premium; rate renewal generally occurs annually with an effective date of January 1st.
Human Resources will initiate contact with Infinisource (TPA) to forward COBRA enrollment information directly to the employee after a termination or resignation occurs. If you experience any of the other "qualifying events," please contact Human Resources at 734.930.4542 regarding COBRA enrollment.