Continuing Coverage

 
 

Benefits Summary Plan Description

Continuing Coverage

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Continuing Coverage After Plan Ends

Consilidated Omnibus Budget Reconciliation Act (COBRA)

A federal law called the Consolidated Omnibus Budget Reconciliation Act (COBRA) enables a participant and his or her covered dependents to continue health insurance if their coverage ends due to a reduction of work hours or termination of employment (other than for gross misconduct). Federal law also enables a participant's dependents to continue health insurance if their coverage stops due to the participant's death or entitlement to Medicare; divorce; legal separation; dissolution of domestic partnership; or when the child no longer qualifies as an eligible dependent. The participant must elect coverage according to the rules of the Leidos health care plans. Continuation is subject to federal law, regulations, and interpretations.

In accordance with COBRA, a participant and his or her family have some important rights concerning the continuation of group health care benefits if that coverage ceases.

Who Is Eligible For COBRA

  • A covered participant who loses coverage due to termination (other than termination for gross misconduct) or reduction in work hours. Termination includes voluntarily quitting, layoff, and lack of work due to a work location closure.
  • The spouse, registered domestic partner and/or dependent children of a covered participant who are covered under the plan and who lose coverage as a result of any of the following qualifying events:
    • The death of a covered employee;
    • The termination of a covered employee (excluding termination due to gross misconduct);
    • The divorce, legal separation, or dissolution of a domestic partnership of the covered employee from his or her spouse or domestic partner;
    • A dependent's ceasing to qualify as a "dependent child" under the terms of the plan; or
    • The covered employee's becoming entitled to Medicare benefits

How to Continue Coverage Through COBRA

To continue coverage, it is the participant's (or a family member's) responsibility to update Workday or notify Leidos Employee Services within 31 days of a divorce, legal separation, dissolution of domestic partnership, or child's losing dependent status.

When Will COBRA Coverage End

The coverage period begins on the date of the qualifying event and ends upon the earliest of the following:

  • 18 months in the case of termination of employment, layoff, or work force reduction;
  • 24 months in the case of military leave of absence;
  • 29 months in the event of a disability, according to Social Security;
  • 36 months in the event of legal separation, divorce; dissolution of domestic partnership or death of the employee;
  • 36 months in the event of all other qualifying events;
  • Failure to pay any required premium when due;
  • The date a covered participant, under the continuation program, becomes covered under another group plan or Medicare — one that does not impose any pre-existing condition limitations on the coverage; or
  • The date that Leidos no longer provides a group medical plan to any of its employees

The participant must apply for this coverage continuation within 60 days from the date the participant's Leidos medical coverage terminates or the date of notification, whichever is later. The participant then has 45 days from the date he or she elected continued coverage to pay all of the premiums back to the date he or she would have lost plan coverage. The participant will be charged the plan's full cost of providing a continued coverage, plus an additional 2% administrative fee (102% of the premium). If the participant wants to continue coverage through COBRA, please contact the number indicated on the notification letter, or, if eligible due to divorce, legal separation, dissolution of domestic partnership, or loss of dependent status, contact Leidos Employee Services for more information.

To be eligible for the additional 11 months coverage due to disability, the participant must provide the Plan Administrator with: a Social Security Disability Award (SSDI) during the first 18 months of COBRA indicating the onset of the disability was within 60 days of losing coverage; and the Plan Administrator is informed of that within 60 days of receipt of the Notice of Award letter from Social Security by receiving a copy of that letter. A participant who qualifies for the disability extension will be charged the plan's full cost of providing a continued coverage, plus an additional 50% administrative fee (150% of the premium).

Please note - Participants that lose health coverage as a result of an Open Enrollment action will not receive COBRA information.