Notice of COBRA Continuation Coverage
The Consolidated Omnibus Budget Reconciliation Act of 1985, (COBRA), is a federal law which requires certain group health plans to offer participants and their dependents the opportunity to extend their health coverage in specific instances where coverage under the plan would otherwise terminate. COBRA continuation coverage requires self-payments by you or your dependents. You and your dependents should take notice that the Western Teamsters Welfare Trust provides COBRA continuation coverage.

Benefits That May be Continued
Under certain circumstances, your eligible family members may purchase COBRA continuation coverage on their own when their Trust sponsored coverage ends. Benefits for COBRA continuation coverage are exactly the same as those provided to similarly situated retirees and dependents. If the Trust changes Plan benefits, COBRA continuation coverage will also change.

What You Pay For COBRA Continuation Coverage
Your formerly eligible dependents must pay the full cost of this coverage including a 2% administrative fee. Your Area Administrative Office will advise you of the applicable cost.

Length of COBRA Continuation Coverage
The length of time your dependents are allowed to continue coverage under COBRA is 36 months.

 

COBRA Qualifying Event	Maximum Duration of COBRA Coverage
Your covered dependents lose coverage because of divorce or your death.	36 months for dependents only.
Your child no longer qualifies as an eligible dependent.	36 months for dependents only.

How to Apply - Time Limits and Notification Requirements
When the Area Administrative Office receives information that a qualifying event has occurred, it will provide your dependents with additional information including an application for COBRA continuation coverage, details of the cost for the coverage, and the payment procedures. Your dependents will have 60 days to complete and return the application for COBRA continuation coverage.

It is the responsibility of the retiree or dependent to inform the Area Administrative Office of a divorce or a child losing dependent status, within 60 days of such a qualifying event to be eligible to continue coverage under this provision.

COBRA Self-Payment - Time Limits
If your dependents do not make timely application and timely COBRA self-payments, they will not be eligible for COBRA continuation coverage. The initial self-payment is due 45 days after having elected COBRA continuation coverage. Subsequent payments will be due the first day of the month for which payment is being made. Failure to make timely monthly payments will result in automatic termination of your COBRA continuation coverage. Checks that are received and do not clear the bank due to insufficient funds are considered non-payment.

Maximum Duration
COBRA continuation coverage will end when the maximum time period for which benefits are available is exhausted. COBRA continuation coverage will end before the maximum time period if any of these events occur:

• Premiums are not paid within the time periods noted above;
• After electing COBRA, the covered person becomes eligible for another group health care plan, unless that person has a pre-existing medical condition for which the other plan limits or excludes coverage, and the pre-existing condition limitation period has not been satisfied. If you need to show a new health plan how long you were covered under the WTWT health plan in order to satisfy or reduce the new plan’s preexisting condition limitation period, you may request a written statement from your Area Administrative Office certifying your length of coverage under WTWT.
• After electing COBRA, the covered person becomes entitled to Medicare;
• You provide written notice to the Trust that you wish to terminate your coverage;
• The Plan terminates.

Other Extensions of Coverage Applied First
Administratively, COBRA will be offered after other available means of extending Trust coverage are utilized.