Consolidate Omnibus Budget Reconciliation Act (COBRA)

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives ACC employees and their families who lose their health, dental and/or TexFlex health care spending account benefits the right to choose to continue these group benefits for limited periods of time, if the lose is due to certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.

The normal continuation period is for up to 18 months at the group rate plus an additional 2% administrative fee. (Please consult with ERS for any dependent or disability COBRA continuation questions.) The employee must formally elect COBRA coverage within 60 days of the “Date of Notice” on the Termination COBRA Election form sent from ERS. The employee is responsible for paying all premiums directly to ERS in a timely manner. Failure to do so will result in cancellation of the health and/or dental coverage. ERS will bill the employee directly and the employee is responsible for making payments directly to ERS. If the former employee is covered under another group plan, COBRA may not be available. Please consult with ERS.

Upon notice of intent to terminate from ACC, the employee’s immediate supervisor should direct the employee to contact the Office of Human Resources, Benefits Section for any questions related to COBRA.  Each covered participant has the right to elect continuation coverage independently. Employees and dependents will not have coverage after the date coverage terminated until the employee formally elects continuation coverage and pay all premiums due. Insurance coverage will be retroactive to the first day of the month following the date coverage terminated.