Continuing Your Health Care Coverage (COBRA)

As required by the Consolidated Omnibus Budget Reconciliation Act (COBRA), if an employee (or the employee's dependents) are no longer eligible to participate in the University's health care plans, including the flexible spending accounts, then the employee and eligible dependents may have the right to continue to participate in the same plan(s) for up to 18 months. If an employee is disabled, as provided under the Social Security Act, at the time of termination, reduction in hours, or within 60 days of these events, the employee may be entitled to continuation coverage for up to 29 months.

Eligible dependents may also extend coverage, at their expense, for up to 36 months in Purdue's group health insurance plans in the event of an employee's death, divorce, legal separation, or when a child ceases to be eligible for coverage as a dependent under the terms of the plan.

An employee may extend the 18-month continuation coverage period to 36 months for an employee's spouse and dependent children if, within that 18-month period, the employee dies or becomes divorced or legally separated, or if a child ceases to meet dependent status. In addition, if an employee enrolls in Medicare during the 18-month period, the employee's spouse and dependent children may be entitled to extend their continuation period to 36 months, starting on the date that the employee becomes eligible for Medicare.

If an employee or the employee's eligible dependents elect to continue as members of the University's plans, the employee must pay the full premium plus two percent. Employees with disabilities, however, will be charged an additional 50 percent of the applicable premium during the 19 through 29 months of continuation coverage. The premium is subject to change if the rates increase or decrease.

Continuation coverage may end if any of the following events occur: (1) failure to make timely payments of all premiums; (2) assumption of coverage under another group health plan, which does not exclude or limit coverage to the employee on account of a preexisting medical condition; or (3) the University’s termination of its group health plans. If the employee becomes entitled to Medicare after termination, the employee will no longer be eligible for continued coverage, but, as noted earlier in this statement, the employee’s spouse and dependent children may be entitled to extend their continuation coverage.

Infinisource, working on behalf of Purdue University, will contact an employee concerning these options at the time termination occurs or when work hours are reduced. Infinisource will also contact an employee’s qualified beneficiaries in the event of the employee’s death. However, in the event that an employee becomes divorced or legally separated, or one of the employee’s dependents ceases to be eligible for coverage under Purdue’s group health insurance plans, the employee and/or his or her dependent are responsible for contacting Staff Benefits within 31 days of the event to discuss continuation rights.