A child of the covered employee who is receiving benefits under the plan due to a Qualified Medical Child Support Order (QMCSO) is entitled to the same rights to elect COBRA as an eligible dependent child of the covered employee.
Example: If it would cost $612 to continue the health FSA under COBRA for the remainder of the year, but the amount left in the account is greater than $612, the account is underspent.
If elected, continuation coverage for the health FSA is equal to the coverage in force at the time of the qualifying event (i.e., the health FSA election amount reduced by the amount of any reimbursable claims submitted up to the time of the qualifying event). Unlike other component plans, coverage under the health FSA is only available through the end of the current health FSA plan year. For example, if you terminate in June and your health FSA has a calendar plan year, continuation coverage for the health FSA is only available through December 31, even though your maximum COBRA coverage period is 18 months. The use-or-lose rule continues to apply under COBRA, so any unused amount will be forfeited at the end of the plan year. Can I waive my right to COBRA coverage? If I do, can I change my mind? Yes, you can waive your right to COBRA coverage. If you waive COBRA continuation coverage before the due date, you may change your mind if you submit a completed election form before the due date. However, if you change your mind after first waiving COBRA continuation coverage, your COBRA continuation coverage will begin on the date you submit the completed election form. How much does COBRA continuation coverage cost? Generally, qualified beneficiaries are required to pay for COBRA continuation coverage. You cannot be charged more than 102 percent of the cost to the group health plan for coverage of a similarly situated employee who is not receiving COBRA continuation coverage (except during a disability extension period, when the charge may be up to 150 percent). You may be able to get coverage through the Health Insurance Marketplace that costs less than COBRA continuation coverage. You can learn more about the Marketplace below. How long do I have to make the first payment for coverage? You must make your first payment for continuation coverage no later than 45 days after the date of your election (the date the election notice is postmarked). If you do not make full payment before the 45-day deadline expires, you and any family members lose your rights to continuation coverage under the plan. How do I pay for ongoing coverage? After you make your first payment for continuation coverage, you are permitted to make monthly payments for ongoing coverage. All ongoing premium payments for continuation coverage are due on the first of each month. Although UnifyHR provides a courtesy monthly reminder notice, you must still make payments even if you don't receive this notice. Federal law gives you a 30-day grace period to submit your payment. You must make payment before the end of the 30th day. If you make payment by mail, your payment must be postmarked by the 30th day. Any payments postmarked after the 30th day of the month will be returned to you.
Please note: It may take up to seven business days after your account is paid current before your carrier(s) list you as active and eligible for service. Claims are paid only when the premiums for that period of coverage have been paid in full. Making payments before the first of the month will help avoid delays in claims processing and can help prevent issues receiving services or filling prescriptions.
If you do not make full payment before the deadline, your continuation coverage will terminate retroactively to the last fully paid month. For example, if you fail to make timely payment for February, your coverage will terminate effective the first day of February (only claims incurred through January 31 will be eligible for payment). If you submit payments after the deadline, or if you submit payment and are then determined to be ineligible for coverage, we will return your payment(s) to you. Submission of premiums, or acceptance of premiums by UnifyHR, does not indicate that coverage is in force. If your coverage is canceled for non-payment or late payment of premiums, it cannot be reinstated. How long does COBRA continuation coverage last? COBRA requires that continuation coverage extends from the date of the qualifying event for a period of 18 or 36 months, depending on who you are and the type of qualifying event you experienced. Continuation coverage under COBRA generally lasts for 18 months due to employment termination or a reduction in hours worked. Certain qualifying events lead to a maximum of 36 months of continuation coverage. These "36-month" qualifying events include the death of an employee, the covered employee's divorce or legal separation, or a dependent child's losing eligibility as a dependent child. In limited circumstances, the covered employee's entitlement to Medicare may also be a qualifying event. Continuation coverage may end before the date noted above in certain circumstances like failure to pay premiums, fraud, or the individual becomes covered under Medicare or another group health plan.
A Special Note About Medicare: When the qualifying event is the end of employment or reduction of the employee's hours, and the employee became entitled to Medicare less than 18 months before the qualifying event, COBRA coverage for the employee's spouse and dependents can last until 36 months after the date the employee becomes entitled to Medicare. For example, if a covered employee becomes entitled to Medicare eight months before the date his/her employment ends (termination of employment is the COBRA qualifying event), COBRA coverage for his/her spouse and children would last 28 months (36 months minus eight months).
Can I extend the length of COBRA continuation coverage? If you elect continuation coverage, you may be able to extend the length of continuation coverage if a qualified beneficiary is disabled, or if a second qualifying event occurs. You must notify UnifyHR of a disability or a second qualifying event within a certain amount of time to extend the period of continuation coverage. If you don't provide notice of a disability or second qualifying event within the required amount of time, it will affect your right to extend the period of continuation coverage. For more information about extending the length of COBRA continuation coverage, download the PDF document titled "An Employees Guide to Health Benefits Under COBRA" from the Department of Labor (DOL) website. What are the rules regarding the disability extension?
If one of the qualified beneficiaries in a family is disabled and meets certain requirements, all of the qualified beneficiaries in that family are entitled to an 11-month extension of the maximum period of continuation coverage (for a total maximum period of 29 months of continuation coverage).