Consolidated 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 flexible spending account benefits the right to choose to continue group benefits for a limited period if the loss 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 up to 18 months at the group rate plus an additional 2% administrative fee. (Please contact ERS for questions about dependent or disability COBRA continuation.) 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; ERS will bill the employee directly. Failure to do so will result in cancellation of the health and/or dental coverage. COBRA may not be available if the former employee is covered under another group plan. Please consult with ERS.

Upon notice of intent to terminate from ACC, the employee’s immediate supervisor should direct the employee to contact HR Benefits for COBRA-related questions. 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.

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