Helpful Information About Your Ability to Continue Benefit Coverage

DIOCESE OF STOCKTON **Helpful Information about Your Ability to Continue Benefit Coverage**

The Diocese of Stockton provides a “Continuation of Benefits” plan.

When is the “Continuation of Benefits” plan offered? In most cases, “Continuation of Benefits” is offered when an employee terminates employment. There are other events that can trigger “Continuation of Benefits” as well, including when a divorce occurs (Continuation of Benefits is then offered to the ex-spouse) or when a child no longer is eligible to stay on their parent’s group health plan. (Continuation of Benefits is then offered to the child.

When does “Continuation of Benefits” start? In most cases “Continuation of Benefits” starts on the first day of the month following the date an employee loses their eligibility to stay on their employer’s health plan. For example, if an employee terminates employment on March 14th, group health coverage will normally end on March 31st. Using this example, “Continuation of Benefits” will start on April 1st. In some cases however, active coverage will end on the employee’s actual termination date. Your “Continuation of Benefits” material will specify the date active coverage ends and the date “Continuation of Benefits” begins.

How much time am I given to elect coverage under the “Continuation of Benefits” plan? Your “Continuation of Benefits” election material will specify the deadline to elect and pay for your Continuation of Benefits. In general, you have 60 days from the date of your material to return your completed election forms. In addition, the “Continuation of Benefits” plan gives you up to 45 days from the date you elect “Continuation of Benefits” to pay your initial premium. Keep in mind, however, that your initial premium must include the full amount you owe all the way back to your original “Continuation of Benefits” start date. This can add up to a very large amount.

What happens if I miss my deadline to elect and pay for “Continuation of Benefits”? If you fail to elect or pay for your “Continuation of Benefits” plan by your deadline, you will forfeit your rights to maintain your health coverage under the plan. There are NO exceptions so be 100% sure that you elect and pay for the “Continuation of Benefits” plan well before your deadline. Keep a copy of everything you send to CBA (Custom Benefits Administrators). Also, it is a good idea to contact CBA BEFORE your deadline passes to make sure that they have received everything they need.

How much does the “Continuation of Benefits” plan cost? “Continuation of Benefits” is very expensive because you must pay the entire premium (plus 2% for processing fees). Health coverage for active employees is heavily subsidized by employers. As a result, the cost for “Continuation of Benefits” is always much higher than the amount you were required to pay as an active employee.

If it is so expensive, why do people elect to continue their health coverage under “Continuation of Benefits”? There are many reasons why a person chooses to elect “Continuation of Benefits”, but the primary reason is that they have no good alternative at the time. Often, “Continuation of Benefits” coverage is maintained while a person is between employment or has just started work and is not yet eligible for coverage with their new employer.

How long can a person extend their coverage under the “Continuation of Benefits” plan? In general, an ex-employee can extend their coverage up to 18 months.

Who is the administrator for “Continuation of Benefits”? Custom Benefits Administrators (CBA) is the contract administrator for the “Continuation of Benefits”. CBA will send your election material within a few days of being notified by your employer that you are eligible for Continuation of Benefits.

How do I contact CBA? You can call them directly at (916) 3030-7100 or email them at [email protected] CBA’s mailing address is: CBA, PO Box 2170, Rocklin, CA 95677.

Unless you have a pressing need, please do not contact CBA until you receive your “Continuation of Benefits” election material. This will ensure that they will have all your information in their system when you contact them.