COBRA
What you need to know
Through the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), under certain circumstances you may maintain enrollment in benefits coverage for you and your dependents past the date coverage would normally end.
Highlights
Under COBRA, you and your eligible dependents may continue health care coverage past the date your coverage would usually end for a specified period of time. COBRA coverage is identical to the coverage you have under the Plan except you are no longer eligible for Weekly Accident and Sickness, Life Insurance, or Accidental Death & Dismemberment Insurance. You and your dependents may make monthly self-payments to the Fund to continue:
- Medical coverage, or
- Medical, dental, and vision coverage
Qualifying Events
Your coverage can last for up to 18, 29, or 36 months under COBRA. The length of coverage depends on the Qualifying Event.
You, your spouse, and/or eligible dependent children are eligible for up to 18 months of COBRA coverage if:
- Eligibility is lost due to termination or reduction in work hours (including retirement) unless your termination is due to gross misconduct
You, your spouse, and/or eligible dependent children are eligible for up to 29 months (18 months plus an 11-month extension) of COBRA coverage if:
- Eligibility is lost due to termination or reduction in work hours while you or your dependent is disabled and entitled to Social Security Disability income benefits
Your spouse and/or eligible dependent children are eligible for up to 36 months of COBRA coverage if:
- You drop coverage after becoming entitled to Medicare
- You die
- You divorce or legally separate from spouse
- Your child is no longer considered an eligible dependent under the Plan
How To Elect COBRA
Your employer should notify the Fund Office of your:
- Termination
- Reduction in hours
- Retirement
- Death
You or your dependent(s) should notify the Fund Office of:
- Your divorce or legal separation
- Coverage ending for your dependent child(ren)
- The occurrence of a second Qualifying Event after already being entitled to COBRA coverage
- When you become eligible for Medicare
The Fund’s COBRA Notice Form for Covered Employees and Other Qualified Beneficiaries must be filled out and returned to the Fund Office to provide notice of a Qualifying Event. Contact the Fund Administrator at 414-258-2336 or 800-255-3340 to obtain a copy of this form.
The notice may be mailed to:
Fund Administrator
Milwaukee Drivers Health and Welfare Trust Fund
10020 West Greenfield Avenue
Milwaukee, WI 53214
Paying for COBRA
You are responsible for paying the cost of COBRA coverage. Once eligible, the Fund Administrator will notify you of the COBRA premium amounts you must pay. Premiums may be as high as 102% of the Plan’s cost, except in the case of Social Security disability.
After COBRA is elected, you have 45 days to make your first premium payment. Monthly payments must be made on the first day of the month for which coverage is provided. A 30-day grace period will be allowed for you to submit your payment. If you do not make a payment by the end of the grace period, your coverage will be retroactively cancelled to the last day of the previous month, and you will lose all rights to continuation coverage under the Plan.
Termination of COBRA
- Required payments not being made on time
- The person covered becomes covered under another group health plan
- The person covered becomes entitled to Medicare
- The Plan terminates its group health plan
The Fund Administrator will provide notice to you as to why coverage is being terminated before the period of coverage ends, the date of termination, and your rights, if any, to other individual or group coverage.
New to the Fund?
To gain access to your benefits, you must first enroll in coverage for you and your dependents.
Contacts
The Health Fund Office
Milwaukee Drivers Health & Welfare Trust Fund
10020 West Greenfield Avenue
Milwaukee, WI 53214
414-258-2336 or 800-255-3340
Fax: 414-258-9419 (Office and fax hours: Monday – Friday 8:00 a.m. to 4:30 p.m.)