COBRA

"COBRA" stands for the Consolidated Omnibus Budget Reconciliation Act of 1985. This law gives you and your covered dependents the right to continue your medical insurance coverage, dental insurance coverage, and/or Health Care Flexible Spending Account participation if you lose your benefits under certain circumstances.

Important Considerations if you or a family member is eligible for Medicare

In general, if you don’t enroll in Medicare Part A or B when you are first eligible because you are still employed, after the initial enrollment period for Medicare Part A or B, you have an 8-month special enrollment period to sign up, beginning on the earlier of the month after your employment ends or the month after group health plan coverage based on current employment ends.

If you don’t enroll in Medicare Part B and elect COBRA continuation coverage instead, you may have to pay a Part B late enrollment penalty and you may have a gap in coverage if you decide you want Part B later. If you elect COBRA continuation coverage and then enroll in Medicare Part A or B before the COBRA continuation coverage ends, the Plan may terminate your continuation coverage. However, if Medicare Part A or B is effective on or before the date of the COBRA election, COBRA coverage may not be discontinued on account of Medicare entitlement, even if you enroll in the other part of Medicare after the date of the election of COBRA coverage. If you are enrolled in both COBRA continuation coverage and Medicare, Medicare will generally pay first (primary payer) and COBRA will pay second.

Please note, if you take COBRA and you're eligible for Medicare, COBRA continuation coverage may pay as if secondary to Medicare, even if you are not enrolled in Medicare. This could result in COBRA only paying a small portion of your medical costs, and you may have to pay most of the costs yourself. To avoid unexpected medical bills, you may need to sign up for Medicare right away. Talk with your State Health Insurance Assistance Program (SHIP) for free, personalized help with this decision. The phone number for SHIP in Illinois is Senior Health Insurance Program (SHIP) is 800.252.8966, TTT 888.206.1327. For more information visit https://www.medicare.gov/medicare-and-you.

COBRA Cost

Under Continuation of Coverage, you can maintain your medical, dental, and/or vision insurance coverage at the rate the University pays for benefits plus a 2% administrative fee. 

When you elect to continue your HCFSA participation, your contributions for the remainder of the calendar year are made on an after-tax basis.

2025 COBRA RATES

Medical, Dental, and Vision

The chart below describes the circumstances in which you and/or your dependents can choose "Continuation of Coverage" as mandated by COBRA, and how long continued coverage for medical, dental and/or vision insurance can last.  Continuation of Coverage lasts up to 18, 29, or 36 months, depending on the circumstances in which you lost coverage. If multiple circumstances apply, the maximum period that coverage can continue is a total of 36 months. You may lose coverage because of a qualifying event, which may include divorce, legal separation, death of a covered employee, reduction in work hours, or termination.

Flexible Spending Accounts (FSAs)

You can continue your participation in your Health Care Flexible Spending Account (HCFSA) through Continuation of Coverage if:

• You are participating in a HCFSA, you have money remaining in your account, and your employment is terminated, or

• You are participating in a HCFSA, you have money remaining in your account, and you change from a benefits-eligible status to a benefits-ineligible status.

Your regular HCFSA participation will end on the day your employment or benefits-eligible status terminates. If you elect to continue your participation through Continuation of Coverage, your HCFSA resumes as of your termination date or benefits-ineligible date. You will be billed on a monthly basis.

Your Continuation of Coverage for the HCFSA ends at the end of the calendar year or when you stop paying the monthly payments, whichever occurs first.

Special Note: Dependent care spending account participation cannot be continued through COBRA.

Applying for COBRA Continuation of Coverage

If your qualifying event is a reduction in hours or a termination of employment, you will be mailed information by WEX Health Inc. (WEX), the plan administrator, with instructions on how to elect Continuation of Coverage.

For any other qualifying event, you or a family member need to notify the Benefits Office within 31 days of either the event or the date you lose coverage because of the event (whichever is later). You will be mailed information by WEX, the plan administrator, with instructions on how to elect Continuation of Coverage.

You and your eligible dependents have 60 days from the date you receive your instructions to notify WEX that you want to continue coverage.

If you elect to continue coverage through COBRA, the coverage begins the month after the date of your qualifying event, and you will be billed retroactively from that date. Contact WEX at 866.451.3399 regarding questions about COBRA coverage after you have applied.

Making Changes to COBRA Continuation of Coverage

 You may change your Continuation of Coverage:

• During Open Enrollment (except for the Health Care Flexible Spending Account); or

• Within 31 days of a qualifying life event such as marriage, divorce, birth or adoption of a child

WEX will require documentation for certain changes. Return a copy of the required documents to Wex within 31 days of the qualifying life event. 

Ending COBRA Continuation of Coverage Early

Examples of when Continuation of Coverage will end before the maximum continuation period, include:

• You or your dependent fail to make timely monthly payments.

• The University terminates the plan under which you elected Continuation of Coverage as mandated by COBRA.

For more information, contact WEX at 866.451.3399.