Health Coverage Continuation (COBRA) Information

Introduction

The federal COBRA law ensures that you and your dependents have the opportunity to continue health coverage in certain circumstances where it would normally terminate.

Qualifying Events

Certain events provide the opportunity to continue health coverage. They are:

Events for the Employee

  • You begin leave without pay (LWOP) or layoff
  • You terminate employment
  • Your Federal Family Medical Leave terminates
  • You have a reduction in hours that results in loss of health coverage

Events for the Dependent

  • Death of employee
  • Employee and spouse divorce
  • Child of employee is no longer eligible under the terms of the plan

You, your spouse, or child must notify the Division within 60 days of a qualifying family event such as divorce or loss of dependent status.

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Continued Coverage

Medical Coverage

  • Mandatory if continued coverage is selected
  • Must select the same or lesser level of coverage as in effect at termination

Dental Coverage

  • Optional
  • May select the same or lesser level of coverage as in effect at termination

Vision Coverage

  • Optional
  • May select the same or lesser level of coverage as in effect at termination

Health Flexible Spending Account (HFSA)

  • Optional
  • May select the same monthly amount as in effect at termination

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Continuation Period

Coverage may be continued, as long as the premium is paid for:

  • 18 months for employee or dependents following employee termination/LWOP/ FMLA termination or reduction in hours
  • 36 months for divorced spouse or children who lose eligibility

An additional 11 months of coverage is available if determined disabled by Social Security.

A second qualifying event, divorcing after termination for example, may extend the amount of time COBRA is available. The covered person must notify the plan within 60 days of the second event.

HFSA maximum:

  • Until the end of the current plan year (June 30)

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How to Enroll

Must enroll within 60 days of:

  • The date coverage ends
  • The date notified of right to elect coverage

Forms to enroll:

  • AlaskaCare COBRA Health Continuation Enrollment form. This form is mailed to members when they become eligible.

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Premiums

  • Paid monthly
  • Paid retroactive to the date coverage ended. No partial month payments.
  • First premium due within 45 days of date you elect coverage
  • Due on the first of the month for which coverage is provided. For example, October 1 for October coverage.
  • May elect direct withdrawal from bank account
  • View COBRA premiums

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When Continuation Ends

Coverage ends at the earliest time one of the following occurs:

  • Maximum continuation period is reached
  • Premiums are not paid
  • Coverage starts under another plan that does not limit pre-existing conditions
  • Coverage is terminated for the entire group of employees
  • Social Security disability ends

For more information contact the Division at (907) 465-4460 or email doa.drb.benefits@alaska.gov.

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Examples

The following are examples of when you may elect coverage and how long coverage may be continued.

Electing Coverage

You terminate employment October 15. Coverage ends October 31 and you are notified of your right to elect coverage on that day. You may elect coverage any time prior to December 31. Premiums are due retroactive to November 1.

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(ben045 Rev. 9/11)