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FAQ - COBRA
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What is COBRA?
COBRA is an acronym for the Consolidated Omnibus Budget Reconciliation Act. It is a Federal law that provides employees and dependents who would otherwise lose coverage an opportunity to purchase health benefits for a limited time.
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Who is eligible?
Employees and dependents enrolled in State Health Benefits at the time of a "COBRA event” resulting in the loss of coverage are eligible.
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How long may COBRA coverage continue?
18 months - termination of employment, change in job status, or leave of absence
29 months - if on Social Security disability status
36 months - death of employee, divorce, or dependent loses eligibility status
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What are the COBRA rates?
COBRA rates effective January 1, 2010
- What is the employer subsidy for COBRA premiums and who is eligible for the subsidy?
President Obama signed the American Recovery and Reinvestment Act (known as the Stimulus Bill) into law on February 17, 2009. The Act includes a provision for a 65 percent employer subsidy for COBRA premiums for employees and covered dependents who no longer have health plan coverage due to the qualifying event of involuntary termination or a reduction of work hours from the period September 1, 2008 through December 31, 2009. Qualified COBRA beneficiaries will be required to pay 35 percent of the COBRA premium for up to nine months beginning March 1, 2009. After nine months, the COBRA participant would be required to pay the full cost of the premium for the time that they remain on COBRA. Visit the COBRA subsidy FAQ webpage for additional information.
- How do I enroll?
University Human Resources will mail a COBRA application and instructions.
- Who receives my completed COBRA application?
The New Jersey Division of Pensions and Benefits.
- What is the deadline for returning a completed COBRA application to the state?
60 days from loss of loss of coverage or date of employer notification, whichever is later.
- Will there be a break in continuous coverage after COBRA enrollment?
No, the COBRA start date coincides with the active coverage end date.
- Can I elect a reduced level of COBRA coverage?
Yes, however you may not increase level of coverage while on COBRA unless there is a qualifying event such as a birth or marriage.
- Can I elect a different carrier?
Yes, for example an employee enrolled in NJ DIRECT 15 may elect to enroll in one of the HMO plans under COBRA.
- When do I pay the premium?
The New Jersey Division of Pensions and Benefits will send you a monthly invoice. For information on the billing notice, visit the SHBP website.
- Where can I direct COBRA billing questions?
New Jersey Division of Pensions and Benefits, P.O. Box 299 Trenton, NJ 08625-0299. You may also call the division at 609-292-7524.
