Frequently Asked Questions About COBRA

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. It requires certain employers to offer eligible employees continued health coverage for a period for up to 36 months after separation. The purpose of this Act is to ensure access to health coverage for employees who would otherwise lose group coverage under specified circumstances called "qualifying events."

The cost for participation is determined by the health plan chosen by the employee and the number of dependents to be covered. Generally, the cost is the full monthly premium of the health plan (employee and employer share), plus a 2% administrative fee.

Employees covered by a CSU health plan may continue coverage of group health insurance when they lose coverage due to:

• a reduction in work hours, or
• termination of employment for reasons other than gross misconduct.

A spouse or domestic partner of an employee covered by a CSU health plan may choose to enroll in COBRA if coverage is lost for any of the following reasons:

1. The death of the employee;
2. Termination of employee's employment or reduction in employee's work hours;
3. Divorce, legal separation, or dissolution of domestic partnership from the employee; or
4. Employee becomes entitled to Medicare.

A dependent child of a covered employee may continue coverage if group health coverage is lost for any of the following reasons:

1. The death of the parent (employee);
2. The termination of the parent's employment or reduction in the parent's work hours with the CSU;
3. The parents' divorce, legal separation, or dissolution of domestic partnership;
4. The parent (employee) becomes entitled to Medicare; or
5. The dependent reaches age 23.

COBRA provides continuous health care coverage, provided that the employee elects to participate, completes the enrollment process, and continues paying premiums to the insurance carrier.

COBRA coverage for employees extends for 18 months. Covered spouses, domestic partners, and/or dependent children are eligible for continued coverage for a maximum of 36 months.

Benefits Services sends an enrollment package to all eligible employees upon separation from the university. Instructions and timelines are included in this packet.

COBRA premiums are sent directly to the insurance carrier.

COBRA can help ensure short-term coverage for families who would otherwise lose health insurance.

You have three options:

1. You may participate in COBRA.

COBRA information and election forms will be sent to your home address within 14 days of your separation.

2. If you are eligible, you may retire.

If you are age 50 or older and have at least five years of CalPERS service credit, you are eligible to retire. If so, you must retire within 120 days of your separation date from the university to be eligible for health benefits in retirement. If you have questions relating to retirement, please contact Felice Sparks, Benefits Manager at fsparks@csulb.edu or at 562-985-8266. You may also contact CalPERS at 888-225-7377.

3. You may elect to procure private health insurance.

You have three options:

1. You may participate in COBRA.

COBRA information and election forms will be sent to your home address within 14 days of Benefits Administration being notified of your time base change.

2. If you are eligible, you may retire.

If you are age 50 or older and have at least five years of CalPERS service credit, you are eligible to retire. If so, you must retire within 120 days of your separation date from the university to be eligible for health benefits in retirement. If you have questions relating to retirement, please contact Felice Sparks, Benefits Manager at fsparks@csulb.edu or at 562-985-8266. You may also contact CalPERS at 888-225-7377.

3. You may elect to procure private health insurance.