COBRA Coverage

Guidelines for COBRA Coverage

Federal law requires employers with 20 or more employees to offer temporary continuing health coverage in some cases when an employee's group coverage ends. UHA may request submission of Federal Form 941 or other documentation to validate the number of employees. To help you comply with COBRA requirements, we can collect COBRA premiums and notify COBRA enrollees regarding ineligibility, rates and benefit changes, and expiration of the coverage period.

Please note that while we are prepared to assist employers to comply with COBRA, the final responsibility to meet the requirements of this law lies with each employer.

Please follow these guidelines for COBRA coverage:

  1. Submit the completed COBRA Continuation Coverage Election Form within 60 days from the date of the qualifying event. Payment of the first premium must be made within 45 days from the election date. Employers may choose to pay the COBRA premiums or have the qualified beneficiary pay.
  2. Premiums may not exceed 102% of the applicable premium amount. If an individual is disabled at the time of termination and the COBRA coverage is extended to 29 months, the premium may be increased to 150% for the 19th through 29th months of coverage.
  3. COBRA coverage may be terminated prematurely due to any of the following events:
  • The company's health plan with UHA terminates.
  • Continuous monthly COBRA premiums are not received within 30 days of the due date.
  • The COBRA enrollee becomes covered under another medical plan that does not contain any exclusion or limitation with respect to any pre-existing condition he/she may have.
  • After the COBRA election, the enrollee becomes entitled to Medicare.

For more information on COBRA, visit the following pages on the Department of Labor website:
http://www.dol.gov/dol/topic/health-plans/cobra.htm
http://www.dol.gov/ebsa/faqs/faq-consumer-cobra.html

Monthly Premium Statements

  1. Payment is the responsibility of the COBRA enrollee, even if the employer chooses to pay the COBRA premium. Claims will not be paid by UHA unless monthly premium payments are current.
  2. A COBRA monthly billing statement will be mailed to the COBRA enrollee after the initial payment is received. UHA’s COBRA monthly billing statement is sent as a courtesy reminder of when payment is due. Payment is due whether or not the billing statement is received.
  3. Payment stub with check made payable to UHA should be sent to:
          UHA – COBRA
          700 Bishop Street, Suite 300
          Honolulu, HI 96813
  4. Payment is also available via Electronic Funds Transfer (EFT) or Credit card. EFT forms are available on our website. Please contact UHA’s Enrollment Services at (808) 532-4000 ext. 299 for more information on credit card payments or any other questions.
  5. Coverage will be cancelled until full payment for the month is received. UHA does not accept postdated checks or checks for an amount less than the premiums owed. 
  6. Coverage will be terminated if an enrollee’s check is returned and proper payment is not received by the end of the current month (see #5 above). 
  7. If coverage is cancelled and payment remains past due beyond the last day of the month due, coverage cannot be reinstated and will remain cancelled.