The Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA)

This is a federal law that requires employers who sponsor group health plans to offer employees and their families the opportunity for a temporary extension of health coverage at group rates. Employees who lose health coverage through termination or another qualifying event are eligible. Generally, the coverage can continue to a maximum of 18 months; however, there are some situations where the coverage may continue to a maximum of 36 months.

Coverage is selected by completing an election card and submitting that form to Human Resources within 60 days of the qualifying event. If you elect to continue coverage you will pay the premiums to Human Resources during the period for which the coverage is continued.

Coverage may end before the maximum period for as number of reasons, including:

  • If any required premium payment is not paid when due, coverage will cease for you, your spouse and your dependent children.
  • If you, your spouse or your dependent children become covered under another group health plan that does not contain any exclusion or limitation for any preexisting condition of the qualified beneficiary, or are entitled to Medicare benefits, coverage will cease for each individual so covered.
  • If all of Pacific University's group health plans are terminated, coverage will cease for you, your spouse and dependent children.
  • If coverage was extended to 29 months due to disability, a determination that the individual is no longer disabled will preclude coverage.

Federal law requires that you inform the Human Resources of any final determination that the individual is no longer disabled. To be sure that you, your spouse and your dependent children receive necessary information concerning your rights, please keep Human Resources informed of any address changes.