COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) is a Federal law which requires "qualified beneficiaries" be offered the opportunity to temporarily continue certain employer sponsored health care benefits, at full cost, after experiencing a "qualifying event" that causes them to lose coverage. Qualified beneficiaries include covered employees and their dependents, and qualifying events include employment termination, reduction in hours, divorce, death, and Medicare eligibility.
For more information on COBRA, please see your enrollment materials or the US Department of Labor's COBRA FAQs.
Participant's COBRA Timeline
1. New Hire: As a New Hire, within 30 days of employment you will receive a General Rights Notice that advises of your rights under COBRA, along with information on how you can continue your employer-sponsored health plans or how to obtain new coverage after employment.
2. Employee Termination: Within 30 days of termination, you will receive a Specific Rights Notice (COBRA packet) that advises you of your rights to continue your employer-sponsored health plans, along with specific information on plan cost and how to elect coverage. You will also receive additional information on how to obtain coverage through the Healthcare marketplace via Healthcare.gov, a private health plan, a spouse's health plan, or a new employer's health plan.
3. Election Period: Once the COBRA Election Packet is printed and mailed out, you will have 60 days to elect through the COBRA online portal or via US mail.
4. Initial Payment and Payment Grace Period: Once you have made your election either online or via US mail, you will have 45 days from that date to make your first full premium payment. All subsequent payments are due on the 1st of each month with a 30-day grace period.
5. COBRA Reinstatement: Once your election and initial payment have been received, Ameriflex will send out a notice to reinstate your coverage within 1-2 business days. It is important to note that it may take the insurance carrier(s) between 7-10 business days to process this request. If immediate medical attention is needed, please contact your insurance carrier for further information.
6. COBRA Termination: Your COBRA coverage can be voluntarily terminated at any time by you and will be effective through the end of your paid-through date. Your COBRA coverage can also be terminated due to non-payment or when you have reached the end of the allotted COBRA continuation coverage.
7. COBRA Open Enrollment: Each plan year, you will be allowed to change plans and coverage levels during the Annual Open Enrollment period. If a response is not received by you on time, your former employer has the option to keep you on the same plan, move you to a similar plan, or terminate your coverage altogether.
