What is COBRA?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that provides individuals and their families the option to continue their group health insurance coverage after experiencing certain qualifying life events. COBRA allows employees, as well as their spouses and dependents, to maintain medical, dental, and vision coverage for a limited time—typically up to 18 or 36 months—following specific events that would otherwise result in the loss of coverage.

COBRA Eligibility

Employee Eligibility

COBRA health coverage may be available if you experience one of the following qualifying events:

• Separation from Employment: You leave your job, whether voluntarily or involuntarily (except in cases of gross misconduct).
• Reduction in Work Hours: Your work hours are reduced to less than half-time, resulting in a loss of coverage eligibility.

Dependent Eligibility

COBRA also extends to dependents of the covered employee. A dependent may be eligible for COBRA continuation coverage if one of these events occurs:

• Child Reaches Age 26 or Marries: Dependent children who turn 26 or get married are no longer eligible for coverage under the employee’s plan.
• Divorce or Legal Separation: If a covered employee divorces or legally separates from their spouse, the spouse may be eligible for COBRA coverage.
• Death of Covered Member: If the employee passes away, their spouse and/or dependent children may qualify for COBRA continuation coverage. This applies whether the employee was still working or retired at the time of their death.

Electing COBRA Coverage

• Upon separation, the employee will receive a COBRA Notice from the Benefits Team via email (CPP email or personal email) or via mail providing information on when benefits will be ending and how to elect continuation of benefits through COBRA.
• Election Form: To activate COBRA coverage, you must submit a completed COBRA Election Form within 60 days of receiving the notice of eligibility to the Benefits Team. If you do not respond within this time frame, you may lose the option to continue coverage.
• Cost of COBRA Coverage: Under COBRA, the individual is responsible for paying the full premium cost of each plan, plus a 2% administrative fee. The employer (e.g., CSU) does not contribute toward the COBRA premiums.
• Payment Process: Payments for COBRA coverage are made directly to each elected plan. The carriers will provide you with instructions on how and when to make these payments, so it is important to stay on top of deadlines to avoid lapses in coverage.

Resources

• CalPERS COBRA

Alternatives to COBRA

• Covered California
• Individual Conversion Policy