Cobra Coverage for Retirees
Some features of the Plan described on this page have been affected by the December 2010 Summary of Material Modifications (SMM), effective January 1, 2011. Click here to access the SMM.
Retirement is a qualifying event under COBRA coverage. When you retire, you may be entitled to make self-payments for up to 18 months for continued Plan coverage under the COBRA coverage rules. If you are receiving pension benefits and elect COBRA coverage, you CANNOT get into the Retiree Benefits plan later, regardless of the length of your COBRA coverage period.
Medicare entitlement is a terminating event under COBRA coverage. A person who is not eligible for Medicare when the election of COBRA coverage is made but who later becomes eligible for Medicare will lose the right to make any additional self-payments for COBRA coverage.
Your Benefits Under COBRA Coverage - You have a choice of making self-payments for one of the following COBRA coverage options:
- Medical benefits only, which include the Routine Physical Exam Benefit,
the Diagnostic X-Ray and Lab (DXL) Benefit, the Comprehensive Benefit, the
Prescription Drug Programs and the Mental Health and Substance Abuse Benefit.
Note - No Routine Physical Exam Benefits or DXL Benefits are payable for dependent children.
- Medical benefits (as stated above) plus the Dental Benefit and the Vision Care Benefit.
The benefit coverage provided for you and your dependents under either of the above options is the same coverage that is provided to active eligible employees and their dependents. For more information about the benefits and provisions applicable to COBRA, see COBRA Coverage starting on page 26.
Benefits for Your Surviving Dependents - If your death occurs while you are making COBRA self-payments after you retire, your surviving dependents may be entitled to make COBRA self-payments according to the rules governing COBRA coverage starting on page 26, subject to the following rules:
- COBRA self-payments may only be made for up to a maximum of 36 months, minus the number of self-payments you had made after your termination of active employee coverage and before your death.
- If your surviving spouse dies while she is making COBRA self-payments, any surviving dependent children (or their guardian) can make self-payments for up to 36 months, minus the number of self-payments made by you and by your spouse prior to your respective deaths.
- If your surviving dependents don't elect to make COBRA self-payments within the COBRA coverage time limitations, they will not be permitted to make self-payments at any future date.