Human Resources

Continuing Insurance Coverage Upon Termination of Employment

Health and Dental Insurance
Life Insurance
Portability
Conversion
Termination Due to Approval for Long Term Disability
Health and Dental Insurance
Life Insurance Under Age 60
Life Insurance Over Age 60

Health and Dental Insurance

If you leave state employment, the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) provides for continuation of health and dental benefits coverage at the group premium rate after your coverage with the State ends. However, certain events must occur for any persons covered under your contract to be eligible (see table below).

Event:	Maximum Eligibility Period Beyond Termination
Employee Termination/ Resignation	The employee and covered dependents have 18 months of COBRA eligibility. If the employee meets the Social Security Administration’s definition of disabled at any time during the first 60 days of COBRA coverage, the employee and covered dependents have 29 months of COBRA eligibility.
Death or Divorce of Employee	The covered dependents have 36 months of COBRA eligibility.
Employee Reduces Work Hours; No Longer Eligible	The employee and covered dependents have 18 months of COBRA eligibility.
Employee’s Dependent No Longer Eligible (Age 19 and no longer a full-time student or marries)	The covered dependent has 36 months of COBRA eligibility.
Employee on Active Military Duty	The employee and covered dependents have 24 months of COBRA eligibility.

The State’s share of the premium payment for health and dental benefits will cease at the end of the month in which the qualifying events occurs, and you will be responsible for full payment of the premium. COBRA coverage begins the first of the month following the qualifying event. The COBRA election period is 60 days after the later of:

If your employment ends, the Iowa Department of Administrative Services will mail a “COBRA Notification/ Election Form” to you within two weeks following your last paycheck. The notification
includes monthly benefit costs and election instructions. In the event of the death of an active employee, the family will receive notice of their COBRA rights. If an employee divorces, reduces hours, or has a dependent that is no longer eligible for coverage, the employee must notify his or her Personnel Assistant within 60 days following the event so that COBRA information can be sent.

NOTE: COBRA rights will not be extended to a Domestic Partner or his/her children, if the relationship terminates, if the employee terminates from State employment, or if the domestic partner’s children have an event that makes them ineligible for employee’s plan. See the General Notice of COBRA Continuation Coverage Rights.

Life Insurance

When you leave State employment, your State-sponsored life insurance coverage ends.
Depending on the reason you are leaving, you may have more than one option for continuing your life insurance coverage at your own expense.

Portability

If you leave State employment for reasons other than disability or retirement, you may be able to continue your supplemental life and supplemental AD&D insurance through a portability provision. This provision is available if you have $20,000 or more of Supplemental Life coverage, are under age 70, and are actively at work on the day before your employment ends. Your Personnel Assistant will complete the employer section of the Life Insurance Portability Form; you are then responsible for contacting Prudential and submitting any required information to them. Once you receive this information, it is your responsibility to contact the insurance carrier, and any resulting coverage is provided under the terms of the group portability contract.

Conversion

If you have less than $20,000 of supplemental life insurance you can elect to convert your group term life insurance to an individual whole life policy through the life insurance carrier, currently
Prudential Insurance Company of America. Your Personnel Assistant can provide you with the forms and information that you will need to convert your life insurance. Once you receive this information, it is your responsibility to contact the insurance carrier, and any resulting coverage becomes an individual contract between you and the insurance carrier.

Termination Due To Approval for Long Term Disability

Heath and Dental Insurance

If you terminate employment upon approval for Long Term Disability (LTD), in lieu of COBRA coverage, you are allowed to continue your coverage with the State group for as long as you remain disabled according to the plan definition of disability. The State’s share of the monthly premium will cease at the end of the month in which your employment terminates. LTD coverage will begin the first of the month following termination and you will pay the full monthly premium for any insurance coverage you choose to keep. You may drop your state group plan completely. However, there is currently no provision for rejoining the group at a later date.

If you continue your insurance coverage with the State of Iowa group, you will be able to participate in the annual enrollment and change period, which will allow you to change your health plan every year. You can continue your group health and group dental coverage separately or together. You do not have to elect to continue in both plans. Your benefits as a member of the Retired/Disabled group are identical to benefits for the plan you held as an active employee.

If the LTD carrier determines that you are no longer eligible for LTD benefits and you are not drawing a retirement benefit, health and dental benefits will stop. You will need to purchase individual health and/or dental coverage at that time.

You can continue your coverage with the group if you become eligible for Medicare. It is your responsibility to submit proof that you have Medicare Parts A and B to your health insurance
carrier. Medicare will become the primary payor on claims and the State group will pay as secondary. A premium rate reduction will occur at that time.

Generally, Medicare eligibility is granted when you turn age 65. It can also be granted at an earlier age if you have a disability. Once you become Medicare eligible, you may elect to drop the State group coverage and purchase a private Medicare Supplement Policy. A Medicare Supplement Policy differs from the State group in that the benefits provided vary by supplement option. If you continue with the State group plan after you become eligible for Medicare, your benefits do not change. Benefits offered to Medicare eligible persons are the same as the benefit plan offered prior to becoming Medicare eligible.

Employees must see their Personnel Assistant for specifics and the required paperwork at the time of termination of employment.

Life Insurance Under Age 60

If you are under age 60 when you are approved for LTD, your life insurance automatically continues
in the same amount that you maintained while you were working. You will not have to pay premiums for your coverage as long as you continue to be disabled according to the State’s Long Term Disability insurance carrier. The insurance is subject to the normal age reductions of coverage in your group contract. Your group life insurance will be in effect as long as you remain disabled according to the group definition of disability or until you reach age 70, whichever occurs first.

If your Long Term disability coverage ends, your life insurance coverage also ends. You can elect to convert your group term life insurance to an individual whole life policy through the life insurance carrier. Your Personnel Assistant can provide you with the forms and information that you will need to convert your life insurance.

Life Insurance Over Age 60

If you are age 60 or older on your date of disability (last active day at work), you can convert your group life insurance to an individual whole life insurance policy. This conversion privilege will be offered when a decision is reached on your claim. You must apply within 31 days from the end of the month in which you are notified in writing of your conversion rights. Monthly premiums must be paid continuously prior to the notice. Contact the Personnel Assistant with your department for the life conversion form.