COBRA FAQ's
COBRA Continuation of Insurance Benefits
- What is COBRA?
- Who is eligible for COBRA continuation of benefits?
- How long do I have to decide whether I want to continue any or all of my benefits available under the COBRA continuation of benefits?
- When does the COBRA continuation of benefits begin?
- How long do COBRA continued benefits last?
- What plans are covered under COBRA continuation of benefits?
Continuing Medical, Dental and Vision Coverage under COBRA
- Must I enroll in all of the medical, dental and vision plans under which I was covered as an active employee?
- When and where will I receive the COBRA continuation of benefits notice and enrollment forms?
- May I come in to the Human Resources office and pick up my COBRA continuation of benefits packet?
- How can I learn more about COBRA continuation of benefits before I lose eligibility to remain covered as an active employee?
- How do I enroll in COBRA continuation benefits and make premium payment(s)?
- May I get insurance coverage outside of the University of Arizona's COBRA continuation benefits plan?
- What happens to my COBRA benefits if I am re-hired at the University?
- How do I cancel COBRA continuation of benefits coverage when I become covered under another employer's benefits plan?
Continuing Flexible Spending Account (FSA) Plans under COBRA
- May I continue to use funds in my Flexible Spending Account (FSA)?
Health Care FSA?
Dependent Care FSA?
- How do I enroll in the FSA COBRA continuation and make premium payment(s)?
COBRA Continuation of Insurance Benefits
1. What is COBRA?
COBRA, the Consolidated Omnibus Budget Reconciliation Act, was enacted in 1985. It mandated that most employers offer continuation group health care coverage to plan participants and certain family members for 18 or 36 months, at group rates, where coverage might otherwise end, such as with a voluntary or involuntary separation from employment, a reduction of hours worked, the death of an employee, or a divorce.
2. Who is eligible for COBRA continuation of benefits?
If you and any eligible dependents were enrolled in the health insurance plan at the time you separated from employment (or otherwise became ineligible for benefits),
then each of you is eligible for COBRA continuation of benefits. You and each eligible dependent have the option to make an independent election for COBRA
continuation of benefits. For example, you and your spouse may choose to elect only medical coverage for you and only dental coverage for your spouse. Please contact
Human Resources at
(520) 621-3662 and request an additional COBRA enrollment form in order to elect individual coverage.
For a complete list of eligibility refer to the following link:
http://www.benefitoptions.az.gov/cobra/COBRAGuide_nocover.pdf
3. How long do I have to decide whether I want to continue any or all of my benefits available under the COBRA continuation of benefits?
You and your eligible dependents have sixty (60) days from the later of:
- The effective date of the loss of eligibility (e.g. separation from employment other than for gross misconduct)
- Reduction in hours (e.g. 0.49FTE or lower)
- Layoff
- The date of notification, whichever is later
There are no extensions to this deadline to elect COBRA continuation.
4. When does the COBRA continuation of benefits begin?
If you choose to elect COBRA continuation of benefits, then there will be no interruption of coverage, as the continuation of benefits is effective on the same date
that you lost eligibility. Claims for services received after the loss of eligibility will not be paid unless you elect COBRA continuation of benefits. (E.g. active
employee benefits terminate on 02/15, COBRA effective date is 02/16)
If you received service between the time you lost eligibility and the time your COBRA continuation of benefits were activated, you may have submitted a claim which may
have been denied. If this happens, you should confirm that your COBRA continuation of benefits were activated by contacting the carrier, and follow the carrier's
direction regarding having the claims reconsidered or resubmitted.
5. How long do COBRA continued benefits last?
If you lose coverage through the State of Arizona plan because of a termination of employment or a reduction in hours, you and your eligible family members may
maintain COBRA coverage for a maximum period of 18 months from the date of the event.
If an employee's spouse and/or covered dependents lose their coverage because of the employee's death or entitlement to Medicare, the employee's legal separation or divorce, the employee's child is no longer a dependent under the Plan, the eligible
family members may maintain COBRA coverage for a maximum period of 36 months from the date of the event.
6. What plans are covered under COBRA continuation of benefits?
The medical, dental, and the vision plans are all included under the COBRA continuation of benefits guidelines. However, you may continue only those plans in which you
were enrolled on the date of your loss of eligibility. For example, if you were enrolled in a PPO plan and the vision plan, you may continue either or both of those two
plans. You would be ineligible to elect participation in a dental plan, and ineligible to change to an EPO plan, until the next annual Open Enrollment period.
If you were enrolled in the Flexible Spending Account plan, you have options to maximize the use of your account balance to reimburse yourself for qualified
expenses.
If you are eligible to continue contributing to your Health Care Flexible Spending Account under COBRA, ASI, the Flexible Spending Account Administrator, will send the
FSA COBRA notice and related forms to your home address.
Continuing Medical, Dental and Vision Coverage under COBRA
7. Must I enroll in all of the medical, dental and vision plans under which I was covered as an active employee?
No. You may choose to retain coverage under some, all, or none of the plans in which you were enrolled. For example, if you have an EPO plan and MetLife dental, you may choose to continue the MetLife dental plan and discontinue the EPO plan.
8. When and where will I receive the COBRA continuation of benefits notice and enrollment forms?
Your departmental business office must submit your University termination report to Systems Control and the change must be reflected in the University's payroll system
before Human Resources can generate your COBRA continuation of benefits notice. Once notified of your loss of eligibility, Human Resources will send the COBRA
continuation of benefits notice and enrollment forms (for medical, dental and vision plans) to your home address of record within fourteen (14) days.
NOTE: If your home address of record is incorrect, be sure to contact your departmental business office or long-on to employee link to update the University's records
so you may receive this time sensitive information in the mail.
For your convenience here is Employee link:
https://emplink.arizona.edu/pls/portal30/ELINK.DYN_ELINK_LOGIN.show
9. May I come in to the Human Resources office and pick up my COBRA continuation of benefits packet?
No. Human Resources will mail the COBRA continuation of benefits information to your home address of record.
Under Federal Law the University is obligated to mail you your COBRA information packet.
10. How can I learn more about COBRA continuation of benefits before I lose eligibility to remain covered as an active employee?
The University of Arizona COBRA continuation of benefits information is on the UA Human Resources website. Information provided includes a general overview, a sample
COBRA continuation of benefits notice, and rates for the various insurance plans.
Here are some informative links for your convenience:
http://www.benefitoptions.az.gov/cobra/COBRAGuide_nocover.pdf
http://www.hr.arizona.edu/04_cb/benefits/miscref/COBRArates.pdf
11. How do I enroll in COBRA continuation benefits and make premium payment(s)?
To continue your medical, dental, or visions plan coverage under COBRA, complete the enrollment form you receive in your COBRA continuation of benefits packet and
submit to the following address:
ADOA Benefits Department
Attn: Marcia Jarvis
100 N. 15th Ave., #103
Phoenix, AZ 85007
If you choose, you may include your initial premium(s) with your enrollment form. Checks must be made payable to each insurance carrier, not to The University of
Arizona. The University of Arizona does not bill COBRA premium(s), and COBRA participants are advised to coordinate all premium payment(s) with the appropriate insurance
carrier.
12. May I get insurance coverage outside of the University of Arizona's COBRA continuation benefits plan?
You may wish to contact your personal life, auto or home insurance agent who may be able to assist you in obtaining an individual insurance policy to meet your specific needs. You may also identify insurance companies in the phone book and call them directly for information on an individual insurance policy.
13. What happens to my COBRA benefits if I am re-hired at the University?
Should you be re-hired in a benefits eligible position, you will have thirty (31) days from that re-hire date to re-enroll in the active employee benefits plans, which
will become effective the first day of the month following your re-hire date. You must contact the carrier's COBRA administration unit directly to cancel your COBRA
continuation of benefits coverage. That information should be identified in the COBRA material you receive from the carrier.
Should you be re-hired in a non-benefits eligible position, you may retain your COBRA continuation of benefits coverage for the duration of the period established by
your qualifying event.
14. How do I cancel COBRA continuation of benefits coverage when I become covered under another employer's benefits plan?
You must contact the carrier's COBRA administration unit directly to cancel your COBRA continuation of benefits coverage. That information should be identified in the
COBRA material you receive from the carrier.
You may contact Arizona Department of Administration at 1.800.304.3687 or www.hr.state.az.us.
Continuing Flexible Spending Account (FSA) Plans under COBRA
15. May I continue to use funds in my Flexible Spending Account (FSA)? Health Care FSA? Dependent Care FSA?
Health Care FSA
After separation from University employment, you are eligible to use the funds remaining in your Health Care FSA to reimburse yourself for qualified health care
expenses. Qualified services must be provided on a date that you were covered under the FSA plan. If you have received qualified services prior to your separation, you
should submit reimbursement claims as soon as possible, and no later than the March 31 following the end of the plan year. If you have yet to receive the services, and
you have funds remaining in your Health Care FSA upon separation, you may be interested in continuing your FSA eligibility until you exhaust your account balance. You
must receive the services on or before December 31 of the year in which you separate employment, and you must be active in the FSA plan when you receive the services. To
continue your FSA eligibility, you must enroll in FSA COBRA with the FSA plan administrator, ASI. Contact ASI directly for further
information regarding reimbursable
expenses, your account balance, continuing eligibility and related questions.
Dependent Care FSA
After separation from University employment, you may use the funds remaining in your Dependent Care FSA to reimburse yourself for qualified dependent care expenses
until you exhaust your account balance. You must receive the services on or before December 31 of the year in which you separate employment. You should submit
reimbursement claims as soon as possible, and no later than the March 31 following the end of the plan year. Contact ASI directly
for further information regarding
reimbursable expenses, your account balance, continuing eligibility and related questions.
http://www.asiflex.com/
16. How do I enroll in the FSA COBRA continuation and make premium payment(s)?
To continue your Health Care Flexible Spending Account under COBRA, complete the enrollment form you receive from ASI, the Flexible Spending Account Administrator, and return it directly to ASI at the following address:
ASI
P. O. Box 6044
Columbia, MO 65205-6044
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