How long after a qualifying event do I have to elect COBRA coverage?
Prior to the ARRA legislation, employees had 60 days from the date coverage is lost under the Pinnacle Plan or the date of the notice, whichever is later. However, the new ARRA legislation requires that we re-notify all employees that have lost coverage due to a qualifying event from the time period between September 1, 2008 through February 17, 2009. Any employee that qualifies as an Assistance Eligible Individual (AEI) may have a second chance to enroll in COBRA and at a reduced rate. What is the new ARRA legislation and how does it affect me? Assistance Eligible Individuals provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after
Qualified beneficiaries must be given an election period at least 60 days during which each qualified beneficiary may choose whether to elect COBRA coverage. This period is measured from the later of the coverage loss date or the date the COBRA election notice is provided by the employer or plan administrator. As a practical matter, it is usually about three months from the date of termination of employment or other qualifying event the election deadline for COBRA. COBRA alternative plans have no election deadline and application may be made at any time. A key distinction is that COBRA requires retroactive premium payments and provides retroactive coverage. In contrast, a COBRA alternative coverage provides coverage only on a “going forward” basis starting, at the earliest, from the date of application.
