Human Resources

COBRA

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that allows individuals to temporarily continue their medical, dental, and healthcare flexible spending account (FSA) coverage at group rates following termination of employment or other events that result in loss of eligibility. COBRA for the IU health plans is administered by HRPro.

Publications FAQ Rates

COBRA Rates 

The employee or dependent is responsible for the full cost of COBRA coverage. Monthly premium payments are made directly to HRPro.

COBRA Plan Information

Eligible Reasons to Elect COBRA

Employees can elect COBRA continuation coverage when their IU medical, dental, or healthcare flexible spending account (FSA) benefits are lost due to:

• a reduction in work hours, or
• termination of employment (other than for gross misconduct), including retirement.

Coverage is limited to the level in effect at the time of termination and extends only to individuals covered under the plan on that date.

Covered dependents also have a right to elect COBRA coverage, even if the employee does not. This means that covered spouses or dependent children covered on an employee's IU plan can elect COBRA if they lose coverage due to:

• The employee's death,
• The employee's termination (other than for gross misconduct) or reduction in work hours at IU,
• Divorce or legal separation from the employee,
• The employee's entitlement to Medicare, or

A covered individual no longer meeting the definition of a dependent (such as a child turning age 26).

Responsibility for Notification

Under COBRA regulations, it is the responsibility of the employee or their family member to notify the university of any event that would qualify them for COBRA, such as divorce, legal separation, or a child losing dependent status. This notification must be submitted within 30 days of the event, or the date coverage would otherwise terminate under the plan due to the event.

Electing COBRA

Before the election process can begin, your coverage must be terminated in IU’s system. Once this occurs, IU Human Resources notifies the COBRA administrator, HRPro, of the termination through the weekly eligibility file. HRPro then sends a COBRA notice and election form to the employee or dependent within 14 days.

You cannot be enrolled without completing a COBRA election form. You have 60 days after the date of the notice, or qualifying event date, whichever is later, to elect COBRA and return your enrollment form to HRPro. When you elect COBRA, your coverage becomes effective retroactively to the qualifying event date. This means you will not have a break in coverage. Therefore, health care expenses incurred between the qualifying event date and the date your enrollment is completed may be covered. However, it is important to note that claims cannot be processed until your COBRA enrollment form has been received and applicable premiums are paid to HRPro.

You can view the COBRA notice at COBRA General Notice. If you have questions about the COBRA enrollment process or paperwork, please contact HRPro at or by phone at 800-989-8776, option 3.

Coverage Period

The length of COBRA coverage is between 18 and 36 months, depending on the circumstances: 

• 18 months when coverage is lost due to termination or reduction in hours;
• 29 months when coverage is lost and individual becomes disabled within 60 days of termination;
• 36 months when coverage is lost due to death, divorce, legal separation, or loss of dependent child status.

Reasons Why Coverage May End

If the employee does not elect COBRA within 60 days, coverage under the IU-sponsored health plan ends on the date they were no longer an active employee or otherwise eligible for the IU plan. If the employee or dependent elects COBRA, their COBRA coverage may also end when:

• COBRA premiums are not paid on time;
• the enrollee becomes covered under another group health plan which does not limit the coverage for an enrollee's preexisting condition;
• the enrollee becomes entitled to Medicare;
• IU no longer provides group health coverage to any employee;
• when the enrollee's COBRA coverage was extended due to disability and there is a final determination that the enrollee is no longer disabled.

COBRA benefits are provided subject to continued eligibility for coverage. Indiana University and HRPro have the right to terminate COBRA coverage retroactive to the date on which eligibility ends.

Additional Questions?

For questions about COBRA coverage, contact IU’s COBRA administrator, HRPro. They can be reached by email at , or by phone at 800-989-8776, option 3.

Publications

• Benefits After Separation Guide for Faculty and Staff Employees
• Benefits After Separation Guide for GME and Optometry Residents

Frequently Asked Questions