COBRA Health Coverage

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act.

It requires employers to offer eligible employees continued health coverage for a period for up to 36 months after separation. The purpose of this Act is to ensure access to health coverage for employees who would otherwise lose group coverage under specified circumstances called “qualifying events.”

COBRA provides continuous health care coverage, provided that the employee elects to participate, completes the enrollment process, and continues paying premiums to the insurance carrier.

Eligibility:

Employees covered by a CSU health plan may continue coverage of group health insurance when they lose coverage due to:

1. a reduction in work hours, or

2. a termination of employment for reasons other than gross misconduct.

A spouse or domestic partner of an employee covered by a CSU health plan may choose to enroll in COBRA if coverage is lost for any of the following reasons:

1. The death of the employee;

2. Termination of employee's employment or reduction in employee’s work hours;

3. Divorce, legal separation, or dissolution of domestic partnership from the employee; or

4. Employee becomes entitled to Medicare.

A dependent child of a covered employee may continue coverage if group health coverage is lost for any of the following reasons:

1. The death of the parent (employee);

2. The termination of the parent's employment or reduction in the parent's work hours with the CSU;

3. The parents' divorce, legal separation, or dissolution of domestic partnership;

4. The parent (employee) becomes entitled to Medicare; or

5. The dependent reaches age 26.