COBRA Continuation Coverage

COBRA coverage may be available to you or your covered dependents following a qualifying event that causes a loss of coverage. Qualifying events for employees include: 

• Voluntary or involuntary job loss, except for cases of gross misconduct 

• Reduction in hours that results in loss of eligibility for coverage 

• Death of the covered employee 

• Divorce or legal separation from the covered employee 

• A dependent child aging out of coverage under the plan 

Your dependents may also have independent COBRA rights following some of these events even if you do not elect continuation coverage yourself. 

When a qualifying event occurs, you or your employer must notify the COBRA Administrator. The MUS COBRA Administrator is Businessolver, Inc. Once notified, Businessolver will send you a COBRA election notice explaining your rights, the coverage available, and the cost.

You have 60 days from the date of the election notice or the date coverage ends, whichever is later, to elect COBRA continuation coverage. Coverage elected within this window is retroactive to the date your previous coverage ended, so you will not have a gap in coverage.

COBRA coverage is not free. You are responsible for paying the full cost of coverage, which is 102% of the plan's cost, including both the employee and employer portions plus a 2% administrative fee. Premiums are paid directly to Businessolver. You have 45 days from your election date to make your first premium payment, which covers all months back to your coverage loss date.

COBRA continuation coverage typically lasts up to 18 months for employees who lose coverage due to job loss or reduced hours. Coverage for dependents may extend up to 36 months in certain circumstances, such as the death of the employee, divorce, or a child aging out of coverage. Coverage begins on the first day immediately following the date your prior coverage ends. 

COBRA coverage ends earlier if you fail to pay premiums on time, become eligible for Medicare, or become covered under another group health plan. 

Yes. You may elect to continue any or all of the coverage types you were enrolled in at the time of your qualifying event, including medical, dental, and vision hardware. You are not required to elect all coverage types.

If you do not elect COBRA within 60 days of your notice or coverage loss date, you forfeit your right to continuation coverage for that qualifying event. Contact the HRS Benefits Team as soon as possible if you believe you may have missed a deadline.

Yes. COBRA continuation coverage satisfies the requirement for continuous health coverage and can prevent gaps that might affect enrollment in future plans.