COBRA Continuation Coverage

COBRA (Consolidated Omnibus Budget Reconciliation Act) is a Federal law under which employees and their covered dependents have the opportunity for a temporary extension of medical, dental and/or vision coverage at group rates in instances where coverage under the plan would otherwise end. In certain cases, it may be possible to continue HCRA coverage. The employee or dependent is responsible for the entire premium for COBRA coverage plus a two percent administrative fee.

If you lose eligibility for university insurance coverage, the HR Service Center (HRSC) will send you a COBRA Election Notice and application after your insurance terminates (last day of the month in which you separate). It is very important that employees ensure their information is up-to-date prior to separating from employment because the notice is sent to their U.S. (Local) mail address. The COBRA application provides all of the necessary information needed to enroll.

Please note that completed applications must be submitted directly to the UT System COBRA office.

Employees have a right to choose COBRA benefits when coverage is lost due to:

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

Coverage is extended only to those individuals covered at the time of termination and may only continue the level of coverage that was in effect on the day of termination, or a lower level of coverage.

Covered dependents also have a right, independent of the employee's right, to COBRA coverage. The covered dependent may elect COBRA even if the employee does not. A spouse or dependent child covered under an employee's medical plan has the right to elect COBRA continuation coverage if they lose coverage due to:

  • the employee's death, the employee's termination (other than for gross misconduct), or reduction in work hours, divorce, the employee's entitlement to Medicare; or
  • if a covered individual ceases to meet the definition of a dependent.

The UT Cobra General Notice contains complete information about COBRA rights for you and your dependents.

 

Portability

When coverage ends due to termination of employment, Portability allows Active Employees and their dependents to continue the Voluntary Term Life coverage by remitting premium directly to Dearborn National. Portability is not available to insureds who elect to convert coverage or whose coverage terminated due to retirement.

  1. The maximum age for coverage in force by Portability is age 65.
  2. Provided premiums are paid when due, coverage terminates the earlier of age 65 or the date the insured no longer pays the required premiums.

Conversion

Conversion allows Employees and their covered dependents to convert some of their Basic Life and/or Voluntary Life insurance to an individual whole life policy if any portion of their Life insurance terminates by remitting premium directly to Dearborn National. Insureds who elect to port coverage are not eligible to convert.

Provided premiums are paid when due, coverage will continue until the insured’s request to terminate coverage.

Please see the life insurance plan details and contact Dearborn National for more information.

Long Term Disability Conversion

If you are enrolled in Long Term Disability (LTD) insurance and lose eligibility for the coverage for a reason other than retirement, you may be eligible to purchase the insurance under the group conversion policy. Please see the Disability Plan materials and contact Dearborn National for additional information and details.

Long Term Care Portability 

If you are enrolled in Long Term Care (LTC) insurance and your employment ends, your LTC coverage is portable and can be continued through direct billing. Contact CNA for more information.