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COBRA
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Questions and Answers on Cobra
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What is COBRA?
COBRA is an acronym for "Consolidated Omnibus Reconciliation Act"
- a federal regulation. The main purpose of COBRA was to require employers
maintaining group health plans to offer employees and their dependents
the opportunity to continue their coverage in cases where they would
otherwise lose coverage because of certain events.
Who is the Covered Employee?
The person employed at the time of the qualifying event whose employment
made benefits continuation under COBRA possible.
Who are Qualified Beneficiaries?
A qualified beneficiary is an individual (employee, spouse or child)
that was covered under the group health plan the day before the qualifying
event. A qualified beneficiary also includes a child born to or adopted
by a covered employee during the period of COBRA coverage. A qualified
beneficiary has the right to continue coverage under COBRA. Domestic
Partners are not considered qualified beneficiaries and therefore are
not eligible for benefit continuation coverage under COBRA, unless required
by state law.
What are Qualifying Events?
Qualifying events are specific occurrences that cause an employee or
dependent to lose coverage under the group health plan.
The following table shows COBRA qualifying events and associated benefits
coverage time frames:
|
EVENT
|
BENEFICIARY
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DURATION
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| Termination of employment or Reduction
in hours of the Covered Employee |
Covered Employee
Spouse (of Covered Employee)
Dependent Children (of Covered Employee) |
18 Months |
| Termination of employment or Reduction
in hours of the Covered Employee, with a Social Security disability
determination |
Covered Employee
Spouse (of Covered Employee)
Dependent Children (of Covered Employee) |
29 Months |
- Death of Covered Employee
- Divorce or Legal Separation of the Covered Employee & Spouse
- Employee Entitlement to Medicare |
Spouse (of Covered Employee)
Dependent Children (of Covered Employee) |
36 Months |
| Loss of Dependent Status |
Dependent Children (of Covered Employee) |
36 Months |
Must the qualified beneficiary elect COBRA coverage to continue benefits?
Yes, to continue COBRA coverage an election must be made.
Is there a break in benefits coverage if the qualified beneficiary
elects COBRA?
Once the initial payment is received coverage is reinstated retroactively
to the date coverage was lost. There is no break in coverage.
What would monthly COBRA benefits cost in 2010?
COBRA monthly costs are outlined in the table below. The figures are
based on full monthly rates including administration costs.
|
Single
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Double
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Family
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| Medical Plans (Includes Prescription
Cost) |
| BCBS Basic |
$336.49
|
$757.11
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$908.53
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| BCBS Buy-Up |
$378.31
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$851.20
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$1,021.45
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| BCBS Health Choice Savings (if eligible
for company contribution for plan year) |
$327.79
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$737.53
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$885.03
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| BCBS Health Choice Savings (if not eligible for company
contribution for plan year) |
$292.78
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$658.75
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$885.03
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| HMO Plans (Includes Prescription Cost) |
| CIGNA (Connecticut) |
$510.18
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$988.61
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$1,650.68
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| Dental Plans |
| Cigna DMO |
$14.86
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$25.87
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$46.27
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| Cigna Basic PPO Dental |
$34.29
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$65.18
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$113.18
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| Cigna Buy-Up PPO Dental |
$43.91
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$83.44
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$144.89
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| Vision Plan |
| EyeMed Vision |
$6.53
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$12.83
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$22.16
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IF YOU LEAVE VALASSIS - Your benefits through Valassis
terminate on the last day of the month in which you terminate employment.
If you had active medical, vision and dental coverage or a Health Flexible
Spending Account, you will be given the opportunity to continue that
coverage at the full COBRA rate.
COBRA CONTACT - For Valassis Communications, Inc. and
NCH associates paid through ADP, Corporate Benefits in Livonia at 1-734-591-4467
handles COBRA enrollment and questions.
For Valassis Direct Mail and Sales & Marketing associates paid
through PeopleSoft, COBRA enrollment is handled through Ceridian. For
questions on COBRA, please contact Ceridian Customer Service at 1-800-877-7994.
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