COBRA Coverage

• What is COBRA?
• Who is eligible?
• How/when can I sign up?
• What are the rates for 2007?
• What are the rates for 2008?
• What would cause this benefit coverage to end?

What is COBRA?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) was signed into law in 1986. In compliance, Purdue and other employers now make group medical insurance and health care flexible spending accounts available for up to 18 months in the following situations:

• Termination of employment (for reasons other than gross misconduct)
• Reduction in number of hours of employment which affects benefit eligibility
• Divorce or legal separation
• Employee’s death (for eligible dependents)
• Child ceases to be eligible for coverage under the plans
• An employee retires

top of page

Who is eligible?

This benefit is available to eligible employees and their dependents. Same-sex domestic partners and sponsored dependents are eligible if enrolled in the medical plan.

top of page

How/when can I sign up?

You have 60 days — from the date your coverage ends OR the date of your COBRA notification, whichever comes later — to elect coverage. If elected, your initial premium is due 45 days after the election date. Coverage and pro-rated premiums are effective back to the qualifying event date. The University will notify terminated employees of their COBRA rights. For other circumstances, however, it is the responsibility of the affected individual to notify Staff Benefits or their campus Human Resources office within 31 days of a qualifying event. Your COBRA notification will come from the vendor InfiniSource.

top of page

What are the rates?

Premiums for coverage will be 102 percent of the full cost of the medical plan selected. (Full cost = employee plus University premiums.)
 

2007 COBRA Contributions	Monthly Rates	Annual Rate
Purdue 500
Member only	$448	$5,379
Member and children	$740	$8,876
Member and spouse	$1,076	$12,910
Member and family	$1,300	$15,600
Incentive PPO
Member only	$394	$4,729
Member and children	$650	$7,803
Member and spouse	$946	$11,349
Member and family	$1,143	$13,714
Arnett Managed Care
Member only	$410	$4,920
Member and children	$677	$8,119
Member and spouse	$984	$11,810
Member and family	$1,189	$14,271
M-Plan HMO
Member only	$393	$4,718
Member and children	$649	$7,785
Member and spouse	$944	$11,323
Member and family	$1,140	$13,682

2008 COBRA Contributions	Monthly Rates	Annual Rate
Purdue 500
Member only	$479	$5,743
Member and children	$790	$9,476
Member and spouse	$1,149	$13,783
Member and family	$1,388	$16,655
Incentive PPO
Member only	$421	$5,049
Member and children	$694	$8,330
Member and spouse	$1,010	$12,117
Member and family	$1,220	$14,641
UnitedHealthcare
Member only	$410	$4,925
Member and children	$677	$8,126
Member and spouse	$985	$11,819
Member and family	$1,190	$14,281

top of page

What would cause this benefit coverage to end?

This coverage ends when the continuation period expires, payment is not received, or the University cancels the health plan contract.

top of page