COBRA Coverage
| Life is full of changes -- children growing up, retirement, changes in jobs and careers. But it is a potentially devastating error to go without insurance during a change in family status. For many of these occurrences COBRA can help with the transition. |
What is COBRA?
In compliance with the Consolidated Omnibus Budget Reconciliation Act (COBRA), Purdue allows continuation of group medical insurance and health care flexible spending accounts for up to 18 months in the following situations:
- An employee terminates for any reason other than gross misconduct.
- An employee retires.
- An employee’s number of work hours is reduced to a level ineligible for benefits.
If an employee who qualifies for Social Security disability benefits terminates, special rules allow up to 29 months of COBRA coverage.
COBRA also permits dependents of Purdue employees to be insured when they would otherwise lose coverage. Typically this occurs when the age cap is reached or the dependent finishes school. Spouses may elect COBRA in the event of a divorce or if the employee dies. Spouses and dependent children may elect to purchase health coverage for up to 36 months in these situations.
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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.
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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.
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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.)
|
2009 COBRA Contributions |
Monthly Rates |
Annual Rate |
|
Purdue 500 |
|
Member only |
$506 |
$6,074 |
|
Member and children |
$835 |
$10,023 |
|
Member and spouse |
$1,215 |
$14,578 |
|
Member and family |
$1,468 |
$17,615 |
|
Incentive PPO |
|
Member only |
$445 |
$5,342 |
|
Member and children |
$734 |
$8,813 |
|
Member and spouse |
$1,068 |
$12,818 |
|
Member and family |
$1,291 |
$15,490 |
|
UnitedHealthcare |
|
Member only |
$419 |
$5,025 |
|
Member and children |
$691 |
$8,291 |
|
Member and spouse |
$1,005 |
$12,058 |
|
Member and family |
$1,214 |
$14,571 |
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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.
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