Consolidated Omnibus Budget Reconciliation Act (COBRA) health coverage continuation applies to team members who leave HPE prior to qualifying for retiree health benefits.
Team members who qualify for the HPE Retiree Medical Program can continue dental and vision benefits through COBRA. Retiree medical coverage during the first 18 months is also generally provided through COBRA. However, if you’re eligible for Medicare, you cannot enroll in COBRA for medical coverage.
COBRA coverage can extend for up to 18 months (and in some cases, 29 months, if you or a covered dependent becomes disabled during the first 60 days of COBRA coverage). You generally pay the full cost of coverage, plus a 2% administrative fee.
You can choose to continue the medical, dental, or vision options you have in place on your last day of work. Then, during the annual enrollment period, you can select different options consistent with enrollment opportunities offered to active team members. You can also make certain changes in coverage during the year if you have a qualified status change. Although you won’t enroll in or pay for COBRA continuation coverage until after your active coverage ends, if you elect and pay for your COBRA coverage by the deadlines, it will be retroactive—therefore you will not have a gap in your coverage.
To minimize any disruption in coverage, it’s important to enroll in COBRA as quickly as possible after your termination date and to send your initial premium payments promptly. If you go to the doctor after your HPE coverage ends but before you elect COBRA coverage, you may need to pay your health provider and be reimbursed by your plan once your COBRA election has been processed.
You’ll need to pay your initial COBRA premiums within 45 days of your election, and ongoing monthly premiums by the fifth of the month for which they are due. Failure to make payment by the due date will cause your coverage to be dropped for nonpayment.*
Although COBRA coverage is effective retroactive to your termination date, your health plan generally won’t recognize coverage until the HPE Benefits Center has received your premiums.
*If coverage is dropped for nonpayment, you’ll receive a coverage termination notice and will have a one-time, 90-day grace period from the date of your termination notice to request that coverage be reinstated. To request reinstatement, you must call the HPE Benefits Center and pay any outstanding premium payments (payment is due immediately upon making the reinstatement request). The reinstatement option is only available one time. If you don’t request reinstatement before the end of this 90-day grace period, or you previously used your one-time reinstatement, you’ll days of losing group medical coverage through another employer or a public health exchangeture.
Once you enroll in COBRA, you can cancel coverage at any time. Cancellations are effective either as of the date you call the HPE Benefits Center, the date a payment was due that you didn’t make, or the date you begin coverage under another program. Once you drop COBRA coverage, it can’t be reinstated in the future.
As part of Health Care Reform, public health exchanges are online marketplaces where people can shop and buy medical coverage. They are designed for people who don’t have medical coverage from an employer or Medicare. Premiums are based on the individual’s age and the benefits offered. Depending on your family income, you may also qualify for government premium subsidies that can lower your cost of coverage.
As you think about your coverage continuation options, you may want to understand and compare the options available to you through the exchanges. To learn more about federal subsidies and state and national exchanges, please visit .