COBRA (Benefits Continuation)-Human Resources - Carnegie Mellon University

COBRA (Benefits Continuation)

When you or a covered dependent lose eligibility to participate in our health plans, the coverage will be terminated. However, under most circumstances, you may continue the medical/prescription, dental, vision and health care flexible spending account benefits coverage through COBRA. Under COBRA, you will pay the full group cost of the plan, plus a 2% administrative fee.

Electing to Continue Coverage

  1. Carnegie Mellon will notify Benefit Coordinators Corporation (BCC), Carnegie Mellon's COBRA administrator, within 30 days after a loss of coverage.
    • You must notify Carnegie Mellon within 30 days if a dependent loses benefits eligibility due to a divorce, etc., so that we may notify BCC.
  2. BCC will notify you within 14 days of receiving notification about your COBRA eligibility. You will receive a form to complete to continue your coverage through COBRA.
  3. Notify BCC within 60 days to continue coverage with COBRA. Coverage will be retroactive to the date you lost active coverage, if you elect to participate. You do not need to enroll in COBRA before your active coverage ends.

COBRA Eligibility

Event under which COBRA is offered

Who may be covered in our benefits plan through COBRA

Employee is separated/terminated from the university (unless terminated for misconduct)

employee, spouse or dependent child who was covered by our benefits plans at the time of separation

Employee loses benefits eligibility (change in status, hours, etc.)

employee, spouse or dependent child who was covered by our benefits plans at the time of loss of eligibility

Dependent loses eligibility for coverage through Carnegie Mellon (due to age, divorce, etc.)

the spouse or dependent child who lost eligibility

Early retirement from Carnegie Mellon (age 60 through 64)

employee, spouse or dependent child who was covered by our benefits plans at the time of separation

End of long-term disability benefits (not returning to work at Carnegie Mellon)

individual, spouse or dependent child who was covered by our benefits plans at the time of end of coverage

Leave of absence that is not benefit-supported

employee, spouse or dependent child who was covered by our benefits plans at the time the leave began

  • COBRA coverage is generally offered for up to 18 months, or longer depending on the circumstances.
  • Individuals must enroll in the same plans that they had as a covered member, unless they were enrolled in a medical or dental HMO and are relocating to an area outside of the HMO service area. You may change plans during the annual Open Enrollment period, or add/delete dependents upon a life status change. (Contact the Benefits Office if you experience a status change.)

Benefits Continuation When Coverage Ends

All university benefits terminate on the last paid date of employment, except those stated otherwise below. Benefits may not be continued or retained after your coverage ends, except as stated otherwise below.

Benefit Features

When Coverage Ends

Continuation

Medical, Prescription, Dental, and Vision Insurance

Last day of month in which employment ends

You may choose to buy continued coverage under COBRA by paying the full cost of coverage plus a 2% administrative fee.

Spending Accounts

Last day of month in which employment ends

A Health Care Account may be continued (although the tax benefits of doing so are affected) in order to incur expenses to use contributed funds.

Dependent Care Accounts may not be continued under COBRA.