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Q. What is COBRA? COBRA is a Federal law that provides a temporary offering of a company’s group health coverage to eligible employees, their spouses and/or dependents after a job loss, reduction in work hours, death, divorce or other life event. Eligible participants can continue to receive the same benefits that they had prior to their qualifying event. Under COBRA, the participant is responsible for paying the entire premium up to 102% of the cost of the plan.
Q. Are employers required to offer COBRA coverage? Employers with 20 or more employees are usually required to offer COBRA coverage and to notify their employees of the availability of such coverage. COBRA applies to plans maintained by private-sector employers and sponsored by most state and local governments.
Q. How long can a participant maintain their COBRA coverage? COBRA participants can maintain group coverage for a maximum of 18 months. Certain qualifying events, or a second qualifying event during the initial period of coverage, may permit a beneficiary to receive a maximum of 29 or 36 months of coverage.
Below are the most common coverage periods.
| Employee, Spouse & Dependent | Coverage Period |
| Voluntary Termination of Employment Involuntary Termination of Employment Reduction in hours Social Security Certification |
18 Months 18 Months 18 Months 29 Months |
| Spouse & Dependent Only | Coverage Period |
| Divorce or Separation Death of an Employee Child Loss of Dependent Status |
36 Months 36 Months 36 Months |
Q. When should employers notify employees of the availability of COBRA coverage? Employers should send an initial Department of Labor (DOL) Notification form within 60 days of the date of when:
Q. What types of events qualify an employee for COBRA coverage? An active employee, spouse, or dependent of an active employee becomes eligible for COBRA continuation coverage when they lose their group health coverage - voluntarily or involuntarily - due to:
Q. How is COBRA coverage initiated? The COBRA processes is triggered when an employee experiences a qualifying event, such as termination of employment. The employer completes the Qualifying Event Notification form and submits it Altus Benefit Adminstrators.
Submit the form directly online, or print a copy of the form from our website and return it to us via:
E-mail: Please email the form to your account representative as a password protected attachment.
Fax: 401-457-7266
Mail:
Altus Benefit Administrators
P.O. Box 1432
Providence, RI 02901-1432
Once the Qualifying Event form is received, we will process the information and send the newly eligible participant a document called the “COBRA Election Notice”, along with an election form.
Q. Is there a time frame for electing COBRA coverage? A qualified individual (e.g. employee or spouse) has 60 days from the date he or she receives the COBRA notice to elect continuation coverage. To elect COBRA, the individual must sign and mail the election form to Altus Benefit Administrators. The postmark on the envelope establishes the election date. An initial bill and monthly payment coupons are then sent to the eligible participants.
Q. How are COBRA payments calculated? The initial payment covers the time period from the loss of coverage to the election date. Monthly payments are based on the current premium, plus a two percent administrative fee. After receiving the initial bill, the COBRA participant has 45 days from the election date to pay the premium. At this time, coverage can be reinstated. Participants should mail COBRA payments to:
Altus Benefit Administrators
P.O. Box 83198
Woburn, MA 01813-3198
Q. What if a COBRA-eligible participant does not pay their initial premium within 45 days after the election is made? If a participant does not pay the initial premium within the 45-day timeframe, they lose their right to COBRA benefits.
Q. What is the grace period for monthly premium payments? Subsequent monthly premiums are due on the first day of each month. By law, there is a 30-day grace period for delinquent payments. If payment is not postmarked within 30 days, Altus Benefit Administrators must cancel coverage retroactive to the date the last full payment was made. Coverage is provided only when the full premium for the applicable period is received.
Q. Is there a Direct Deposit Option for employer premiums? Our automatic banking deposit program conveniently deposits monthly COBRA payments into an employer’s designated banking account. Employers can sign up for this option by filling out the Direct Deposit Form.
Q. What type of administrative services does Altus Benefit Administrators manage for the employer? On a monthly basis, Altus Benefit Administrators provides the following tracking and oversight services to employers:
Q. Can employers access COBRA reports online?Employers can register to access their monthly reports online. Altus Benefit Administrators will assign a User ID and password so employers can view and print detailed management reports, including: census reports, monthly COBRA activity and monthly premium information.
For questions, contact the Altus Benefit Administrators Customer Service Center at
1-800-371-7542, Monday–Thursday, 8 a.m. – 6 p.m. ET; Friday, 8 a.m. – 5 p.m. ET.