Office of Human Resources - Benefits Design & Management

CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT (COBRA)

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COBRA Guide

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Who is eligible for premium assistance?
A person is eligible for premium assistance if and only if:

  • He/she is eligible for COBRA coverage between
    Sept. 1, 2008 and Dec. 31, 2009
    AND
  • The qualifying event that makes him/her
    eligible for COBRA coverage is a covered
    employee’s employment being involuntarily
    terminated     between Sept. 1, 2008 and
    Dec. 31, 2009.

Who is NOT ELIGIBLE for premium assistance?

  • A person whose employment was not involuntarily
    terminated      
  • A person terminated for gross misconduct
    is not eligible for COBRA or the premium assistance.
  • Individuals who are eligible for coverage
    under another group health plan
    (a spouse’s plan, for example)
  • Dependents who lose coverage due
    to the death or disability     of an employee

COBRA is a federal law that allows an employee who has lost healthcare coverage to continue the group medical, dental and vision insurances that s/he had while a benefits-eligible employee. The employee and/or any dependents covered on the employee's plan the day before the loss of benefits can be enrolled in COBRA.

These events qualify an employee and dependents for COBRA coverage for up to 18 months:

  • Separation from ASU;
  • Retirement; or
  • Working less than 20 hours a week.

These events make a dependent eligible for up to 36 months:

  • Reaching maximum age (19 or 25);
  • Losing full-time student status;
  • Divorce, annulment, or separation of employee; or
  • Death of employee.

If you separate, retire or lose your eligibility due to reduced hours, the HR Benefits Office will automatically mail you COBRA information and an application several weeks after your loss of coverage. When other qualifying life events cause the loss of coverage, employees must notify the HR Employee Service Center within 60 days or COBRA coverage may be denied.

You have 60 days from the loss of coverage, or the date of the notification letter (whatever date is later), to complete and submit the COBRA Application. COBRA coverage is always effective the day after the loss of coverage and premiums must be paid retroactive to that date.

THE COST: Full premium price plus a 2% administrative fee paid monthly.You may be eligible for the premium assistance provided for under the American Recovery and Reinvestment Act of 2009, which was enacted Feb. 17, 2009. 

Under the new federal law, a person who is eligible premium assistance will be entitled to COBRA coverage–for a limited time only–at a reduced rate: the individual pays 35% of the COBRA premium and the federal government subsidizes the remaining 65% of the COBRA premium for nine months.  The subsidy/premium assistance will apply to medical, dental and vision coverage (not flexible spending accounts).