HUMAN RESOURCES at MIT

COBRA

If you have become ineligible for health and/or dental coverage and wish to continue coverage, you must complete and return the Election Form sent by the MIT COBRA Plan, administered by Crosby Benefits Systems.

Under federal law, if you are a qualified beneficiary and lose health coverage from your employer's sponsored health plan due to certain specific events, you may elect to continue your active health plan benefits coverage in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

COBRA coverage gives Plan Participants the opportunity to choose continuation of the same health care benefits and options they were enrolled in before their qualifying event occurred. The coverage is subject to all of the same deductibles, exclusions, limitations, and other provisions of the plan.

Election Period

Once MIT is notified that a qualifying event (such as a termination of employment) has occurred, the covered individual will be notified of his or her right to elect continuation coverage. Each qualified beneficiary has independent election rights and will have 60 days from either the date coverage is lost under the group plan or from the date of notification of COBRA rights - whichever is later - to inform the MIT COBRA Plan that he or she wants to elect continuation coverage. If a qualified beneficiary does not elect continuation coverage within this election period, then the right to continue health/dental insurance will end.

If a qualified beneficiary elects continuation coverage and pays the applicable premium, MIT COBRA Plan is required to provide the qualified beneficiary with coverage that is identical to the coverage provided under the plan to similarly situated employees and/or covered dependents.

What are "Qualifying Events"?

  • The covered employee becomes ineligible due to termination of employment, reduction in work hours to ineligible status, or change to ineligible job title.
  • The covered employee dies. The qualified beneficiary(s) is eligible to participate in COBRA coverage.
  • The covered employee becomes divorced or legally separated.
  • The covered employee's child loses eligibility under the plan because of age, marriage, employment, service in the armed forces, or otherwise ceases to be an eligible dependent under the terms of the Plan.
COBRA rights also apply in the event of a layoff.

Length of COBRA

The qualified beneficiary will have the opportunity to continue coverage for up to the maximum following periods: 18 months from the date of the qualifying event; 29 months from the date of termination off the MIT Long Term Disability Plan; 36 months from date of employee's death, divorce, or when his/her dependent child ceases to qualify as a dependent under the plan.

If the qualified beneficiary has received services from his or her active health plan before the qualifying event date, those services that would have been normally covered under the plan can be reimbursed by the health plan.

When COBRA Coverage Ends

If a qualified beneficiary chooses to continue group health coverage and makes the necessary monthly premium payments, coverage will continue until the earliest of the following occurs:

Eighteen (18) months after the covered employee's - termination date, hours are reduced to ineligible, or change to ineligible job title or pay.

Twenty-nine (29) months after the former participant in the MIT Long Term Plan (LTD) loses eligibility under the LTD Plan.

Spousal Benefits - Thirty-six (36) months after the date of the qualifying event (employee's death, finalized divorce, or divorce then remarriage).

Thirty-six (36) months after the date of the dependent child's ineligibility.

Premium Payment

If an employee elects COBRA coverage, he or she will receive a supply of premium payment coupons from Crosby Benefits Systems. The monthly cost of the continued coverage is at 102% of the full cost of the plans (for these rates please contact the Benefits Office at benefits-www@mit.edu). The participant must send appropriate coupon and check to the Crosby within 45 days after the date the participant signs the enrollment form to continue coverage

The first premium payment must cover the number of months between the date of the qualifying event and the signature date on the enrollment form. After the initial payment, each payment is due on the first day of each month.

Important! PLEASE BE ADVISED THAT THE PARTICIPANT'S COVERAGE MAY LAPSE UNTIL THIS PREMIUM PAYMENT IS RECEIVED.

Once the qualified beneficiary has elected COBRA coverage and Crosby has received the initial premium payment, subsequent payments are due, as specified by law, within 30 days after the due date indicated on the qualified beneficiary's premium payment coupon. If Crosby does not receive payment before that date, the COBRA coverage will be terminated on the last day of the period for which payment was received.

Please send any COBRA questions to benefits-www@mit.edu