COBRA

The Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) provides for continued coverage for a certain period if an employee, spouse or domestic partner, or dependent child loses group Medical or Dental coverage due to one of the following qualified events:

  • You terminate employment with SMU (for reasons other than gross misconduct)
  • Your work hours are reduced below the eligible status for these benefits
  • You die
  • You divorce, your marriage is annulled, or you are legally separated
  • A covered child ceases to be an eligible dependent

Coverage Continuation Period

  • You may continue coverage under COBRA for up to 18 months if you terminate employment or your hours of employment are reduced below the eligibility requirement for these benefits.
  • If an enrolled dependent loses coverage due to one of the events described above, he/she may continue coverage for up to 36 months.

What You Must Do

You must notify Human Resources within 60 days of:

  • divorce/legal separation/annulment
  • termination of domestic partnership
  • loss of dependent status

COBRA is administered for SMU by BCBSTX/Health Care Services.  If you lose coverage because of a qualifying event, Health Care Services will send you a COBRA election packet.  You must send enrollment forms and premiums directly to Health Care Services.  COBRA Member Services can be reached at 1-888-541-7107.

Involuntary Terminations - Subsidized COBRA Premiums

If you are involuntarily terminated from employment between September 1, 2008 and February 28, 2010, you may qualify for a premium reduction for up to nine months under the American Recover and Reinvestment Act of 2009.  The subsidy means you pay 35 percent of the COBRA premium during the nine-month period.  Ask your Benefits Office for details.

Refer to the Department of Labor FAQs for Employees About COBRA Continuation Health Coverage for additional information regarding COBRA rights.

COBRA Benefits Guide

COBRA Alternative: COBRA participants must pay substantial premiums to continue coverage.  You may be able to find more affordable coverage through websites such as www.ehealthinsurance.com.  Valuable information on how to find good health care policies can be found at www.smartmoney.com.