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*May
not be available for all participants
COBRA
continuation coverage generally starts on the date of a
qualifying event (see "What is a
qualifying event?" in the FAQ below). In
most cases, COBRA continuation coverage can extend for a
maximum period of 18 months. This maximum coverage
period varies according to the type of qualifying event
that was experienced by the participant.
For
situations such as divorce, loss of dependent status, or
becoming eligible for Medicare, coverage may continue for
up to 36 months. Or, a disability extension may be
given for up to 29 months for qualifying disabled employees.
Under
COBRA, the participant pays the full coverage premium cost
with their own out-of-pocket money. The expense of
the plan is also paid by the participant and coverage can
only be extended for a limited time as specified above.
Frequently
Asked Questions
What
is a qualifying event?
Who
is a qualified beneficiary?
When
did my insurance coverage end?
How do I elect
COBRA continuation?
When are my
premiums due?
Do I have to
pay for the months for which I did not need coverage after
my termination?
How do
I make my payments for COBRA and to whom?
Will I
be billed for my premium(s) each month?
What happens
if my premium is late?
Can I pay
just part of the month if I do not need the full month of
coverage?
How is
this insurance different from what I had?
Who do I call
when I have a problem with a claim or want to know more
about my insurance plan?
How do I
avoid interruption in my coverage?
What happens
when my COBRA period has expired?
What paperwork
should I keep?
Who
do I contact for more information?
What
is a qualifying event?
There are 5 events that are considered "qualifying"
1. The death of a covered employee.
2. The termination of an employee (not considered gross
misconduct); or the reduction of hours, of a covered employee's
employment.
3. The divorce or legal separation of a covered employee
from the employee's spouse.
4. A covered employee becoming entitled to Medicare benefits
under title XVIII of the Social Security Act.
5. A dependent child ceasing to be a dependent child of
the covered employee under the generally applicable requirements
of a plan and a loss of coverage occurs.
Who
is a qualified beneficiary
A qualified beneficiary is someone who is covered
under the plan immediately prior to the qualifying event.
This includes the covered employee (only if the qualifying
event is a termination or reduction in hours) and the spouse
or dependent child of the covered employee.
When
did my insurance coverage end?
Your
insurance ended on the date stated on your Election Form
(see first paragraph on page 1). Page 5 of the Election
Form provides all applicable timelines.
How
do I elect COBRA continuation?
You
will need to complete the form on page 7 of the Election
Form in its entirety. Please include the date of birth &
Social Security numbers for all dependents that are to be
covered. Sign and date the form and return it to Chard Snyder
for processing. You may elect one or all of the benefits
under which you previously had coverage. In addition, you
may elect the same amount of coverage as you received, or
you may elect less coverage than you received, but you may
not elect more coverage then you received as an active employee.
All of this information is found on page 6 of the Election
Form. Here is an explanation for some of the terms:
Coverage
Type
= the
plan under which you had coverage (Ex: UHC-PPO)
Tier
Type
= the
level of coverage you had or wish to elect (Ex: EE+ Family)
Rate
= the monthly
premium amount for the coverage being elected
When
are my premiums due?
All
premiums are due on the first of each month. You have a
30-day grace period to remit your premium(s); however, you
will not have coverage until the carrier has been notified
that you have paid the premium(s) in full. For initial premium(s),
you have 45 days from the day you elected coverage to make
the first payment for any back due premiums. But remember,
you will not have coverage until all premiums have been
paid in full.
Do
I have to pay for the months for which I did not need coverage
after my termination?
Yes,
COBRA begins on the last day you had coverage before terminating
employment. All premiums that are past due must be made
up or your coverage cannot be continued. Once all premiums
have been paid in full, the carrier can retroactively cover
any claims incurred during that time.
How
do I make my payments for COBRA and to whom?
There
are two methods of payment for COBRA: You may pay by check
or cash. Credit card payments or payments over the phone
cannot be accepted at this time; however, we are now accepting
payments from your personal bank account on our website.
All payments should be made payable and remitted directly
to Chard Snyder.
Will
I be billed for my premium(s) each month?
Once
you elect COBRA, you will receive coupons that can be used
through the end of your plan year to remit payments. Each
plan year, you will receive a new set of coupons. There
will be no billing, invoicing or reminders sent to you.
It is your responsibility that your premiums are paid on
time. You may call or email us for an update on the status
of your account at any time.
What
happens if my premium is late?
If
you do not make your payment within the 30-day grace period,
your coverage will automatically be terminated without advance
warning. You will receive a termination letter at
that time to notify you of a lapse in your coverage due
to non-payment of premiums. Once your coverage has lapsed,
it cannot be reinstated.
Can
I pay just part of the month if I do not need the full month
of coverage?
No,
premiums cannot be prorated for a shorter period. You must
pay the full premium amount for each month. Partial payments
will be accepted, but cannot be reported to the carrier
until the full amount has been paid. You will not
have coverage until all premiums have been paid in full.
How
is this insurance different from what I had?
There
is no difference in the insurance plan that you now have
under COBRA. All plan rules and coverages are exactly the
same as you had before you terminated employment. The only
difference is that you are now paying the actual full cost
of the premium instead of just the employee contribution
amount.
Who
do I call when I have a problem with a claim or want to
know more about my insurance plan?
All
inquires regarding coverage or claims activity are to be
sent directly to the carrier, just as you did before you
elected COBRA. There is a contact number located on the
back of your insurance card(s) to call for assistance. Again,
this is the same insurance that you had before you elected
COBRA. If, however, your insurance carrier does not have
a record of your COBRA election in their system, please
contact
us for assistance.
How
do I avoid interruption in my coverage?
The
best thing to do is to make your COBRA election as soon
as you receive your Election Form and return it to us with
the appropriate amount due immediately. Unfortunately, there
is often a slight delay in the carriers updating their systems
to reflect COBRA elections and payments received and credited.
If you have an ongoing medical issue, it would be in your
best interest to return your paperwork as soon as possible.
Legally, you have 60 days to elect COBRA and then another
45 days to make up any past due premiums. Suggesting that
you send in the election form and payment as soon as possible
is only an answer to the question of what is the best way
to avoid interruption of coverage and not anything that
is mandated by the IRS or any other governing agency.
What
happens when my COBRA period has expired?
When
your COBRA period has ended, it will be your responsibility
to find other insurance coverage. There are no extensions
available for COBRA other than those governed by law (see
page 2 of your Election Form). Some carriers may provide
conversion policies, but it is your responsibility to call
them and get the information that you need.
What
paperwork should I keep?
Please
read the Election Form you received in its entirety. When
you return your signed Election Form, make a copy before
sending it to Chard Snyder and keep it for your records.
Who
do I contact for more information?
If you need assistance with your COBRA plan, please
contact us.
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