Human Resources Manual

Policy No.: 4-22 This policy applies to:
Policy Name: COBRA Benefits Continuation Non-exempt staff
Effective Date: 08/01/04   Exempt staff
Revised:   Faculty

Policy

The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) provides employees and their qualified beneficiaries the opportunity to continue health insurance coverage under Loyola University New Orleans’ health plan when a “qualifying event” would normally result in the loss of eligibility.

Some common qualifying events are termination of employment, death of an employee, a reduction in an employee’s hours or a leave of absence, an employee’s divorce or legal separation, an employee’s qualification for Medicare, and a dependent child no longer meeting eligibility requirements.

Procedure

Under COBRA, the employee or beneficiary pays the full cost of coverage at Loyola University’s group rates plus an administration fee. When aware of a qualifying event, Loyola University provides each eligible employee with a written notice describing rights granted under COBRA when the employee becomes eligible for coverage under Loyola University’s health insurance plan. The notice contains important information about the employee’s rights and obligations.

Human Resources cannot be aware of every instance where an employee has a qualifying event. Employees who experience a qualifying event and want to continue medical benefits under COBRA should contact the Human Resources Department.