the spouse and dependent children of the employee or retiree have the option of purchasing continuing coverage under KSU's group health plan for up to 36 months.
If a dependent child loses coverage under KSU's health plan because he or she has reached 18 years of age, if no longer in University, or 21 years of age, if still in University, the child may purchase continuing health care coverage under KSU's group plan for up to 36 months.
Employees or qualified beneficiaries electing COBRA coverage are responsible for paying the cost of the extended health care coverage. The purchase price of continuing coverage is the full cost of the premium KSU pays for similarly situated active employees, plus 2 percent to help pay for administrative costs. During the eighteen (18) months of extended coverage for disabled employees or family members, the cost is 150 percent of KSU's group premium rate.
By enrolling in the Health Care Continuation Plan, employees and their family members receive the benefit of purchasing the same extensive coverage provided to active employees at favorable group rates. There is no waiting period, no exclusion for preexisting conditions, and no physical examination. Any amounts already paid toward deductibles and coinsurance during the current year count under the continuation policy.
Employees and family members can elect full coverage that includes dental insurance, or they can opt for medical coverage only. During the regular open-enrollment periods, individuals on COBRA continuation coverage are given the opportunity to change plans. At the end of the 18-, 29-, or 36-month coverage period, individuals participating in the Health Care Continuation Plan have the right to convert to nongroup coverage with KSU's insurance carrier.
This continuing coverage terminates before the expiration of the 18-, 29-, or 36-month period if the employee or qualifying family members become covered under another group health plan that provides comparable benefits and does not penalize the newly covered individual(s) for preexisting conditions. KSU's continuing coverage also terminates if premiums are not paid on time or if KSU discontinues all of its group health plans for all employees.
In order for KSU to meet its legal obligations in providing continuing health care coverage, all employees must inform OHR within 60 days of a divorce or legal separation or when a dependent child reaches 18 year of age, if no longer in University, or 21 years of age, if still in University. It also is essential that Human Resources has a current address for all employees and family members.
This policy statement is a brief description of the Health Care Continuation Plan and does not fully explain employees' rights. Employees should read the notice they