OAR 111-050-0001: Continuation of Group Medical and Dental Insurance Coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA)

COBRA allows an eligible individual losing group health plan coverage due to a qualifying event to continue their coverage for a limited time on a self-pay basis. (1) OEBB will issue or cause the issuance of an initial COBRA notice explaining the right to continue medical and dental insurance plans to all newly eligible employees and individuals. (a) The notice must be mailed to the eligible employee’s known address immediately following enrollment in OEBB medical or dental insurance plans. The notice must include all known eligible individuals residing at the address. Known eligible individuals residing separately from the eligible employee must be mailed a separate notice at their known address. (b) The initial COBRA notice must be mailed to individuals becoming newly eligible due to marriage or the formation of a domestic partnership. (2) A COBRA triggering event must cause the loss of benefit coverage. COBRA triggering events include: (a) An involuntary reduction in hours or layoff; (b) A strike or lockout; (c) The beginning of an unpaid leave of absence; (d) The termination of employment; (e) Retirement; (f) A child no longer satisfying eligibility requirements; (g) The loss of employer-sponsored group coverage for dependents due to Medicare eligibility; (h) A divorce or termination of a domestic partnership; and (i) The death of the employee. (3) All individuals losing eligibility due to a triggering event must receive a COBRA continuation notice. (4) An eligible employee or dependent has 60 days from the receipt of the COBRA notice to activate their COBRA rights of continuation and 45 days from the election date to pay the initial premium. Generally, OEBB-sponsored insurance coverage must be continuous. (5) Generally, medical plans may be continued under COBRA provisions for the following basic maximum coverage periods: (a) 18 months after the date of the triggering events specified in section (2)(a)–(e) above; and (b) An 11 month extension is provided to COBRA participants when there is a disability determination by the Social Security Administration and the plan is notified within the required timeline, resulting in a 29 month coverage period; or (c) 36 months after the date of the triggering events specified in section (2)(f)–(i) above. (6) An eligible employee’s spouse or domestic partner who is 55 years of age or older and who loses benefit coverage due to events specified in section (2)(h) and (i) above, may continue OEBB medical insurance coverage for themselves and their children beyond the general 36-month COBRA continuation period. An eligible individual may continue their OEBB medical insurance coverage until they are entitled to Medicare, are covered under another group medical insurance plan or otherwise lose eligibility. (7) An eligible individual continuing OEBB medical insurance coverage only or medical and dental insurance coverage under COBRA provisions has the same rights as active eligible employees for making changes midyear and during the open enrollment period. (8) COBRA coverage will terminate on the last day of the month for which premiums are paid in full.