Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), dependents of btiÌåÓý retired members who no longer meet the eligibility requirements for btiÌåÓý-administered healthcare coverage may apply for continued benefits for a maximum of 36 months. Dependents eligible for COBRA cannot be denied coverage based on their health status.
Dependents must have had continuous coverage under a btiÌåÓý-administered medical plan; individuals with previous lapses in coverage are ineligible.
Eligibility is also based on the dependent experiencing one of the following qualifying events:
- Divorce or legal separation of a spouse or eligible domestic partner from a btiÌåÓý member
- Death of a btiÌåÓý member leaving a spouse or eligible domestic partner and dependents who are not eligible to receive monthly retirement benefits
- Dependent child reaches age 26
Coverage under COBRA becomes effective the day after the applicant becomes ineligible for the btiÌåÓý-administered group coverage, if:
- Dependent applies for COBRA within 30 days of the date of the qualifying event
- btiÌåÓý receives dependent’s initial quarterly payment by the due date
A three-month premium payment is required to initiate COBRA coverage. btiÌåÓý will mail an initial bill 30 days after receipt of the COBRA application. The bill will cover premiums retroactive to the date the regular btiÌåÓý-administered coverage terminates; it is payable approximately 15 days from the date it is received.
To continue coverage, the applicant is responsible for the full cost of the coverage at the current COBRA rate, which includes a 2 percent administrative fee. The COBRA rate is adjusted annually to reflect the actual cost of coverage.
Current COBRA rates are included in the Medical and Dental/Vision Premium Rates, which can be accessed on the Retiree Healthcare Forms and Publications page, or by contacting us.