COBRA Overview
The Federal law known as the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 requires that most employers sponsoring group health plans offer employees and their eligible dependents the opportunity for temporary extension of continuous coverage in instances when coverage under the plan would otherwise end.
A COBRA notification packet is mailed to an employee within 14 days of the date that Human Resources receives
official
confirmation of an employee’s separation from employment or change in eligibility status. The law requires that this packet be sent by mail to the last known address of the employee. This packet will include
- an official notice that outlines regulations
- a COBRA enrollment application
- information on life insurance conversion options
An eligible individual has 60 days from the date of the notice to elect COBRA coverage, which is effective retroactive to the last day of coverage under the State of Arizona group plan. The individual then has an additional 45 days from the date of COBRA election to make the first premium payment, made payable directly to the carrier(s). Additional details will be provided in the materials enclosed in the COBRA notification packet.
For details of rights and obligations under this law, please see the Sample COBRA Notice.
For rate information, go to COBRA rates.
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