Electing COBRA Continuation Coverage

Learn how to elect COBRA continuation coverage, understand enrollment deadlines, compare your health coverage options, and find information about premiums, payments, and eligibility.

Each Qualified Beneficiary has an independent right to elect continuation coverage. For example, either the Employee or the employee's spouse may elect continuation coverage, or both may elect it. Parents may elect to continue coverage only on behalf of their dependent children. A Qualified Beneficiary must elect coverage by the date specified on the Election Form received from Businessolver. Failure to do so will result in loss of the right to elect continuation coverage under the Plan. A Qualified Beneficiary may change a prior rejection of continuation coverage any time until that date.
The COBRA Enrollment Form will provide step-by-step directions for completing the online COBRA enrollment process. You can only complete this process online if the Qualified Beneficiary electing COBRA was employed by the State of Montana. If the Qualified Beneficiary electing COBRA is a dependent, the dependent must complete the paper Election Form.

Generally, each Qualified Beneficiary may be required to pay the entire cost of continuation coverage. The amount a Qualified Beneficiary may be required to pay may not exceed 102 percent (or, in the case of an extension of continuation coverage due to a disability, 150 percent) of the cost to the group health plan (including both employer and employee contributions) for coverage of a similarly situated plan participant or beneficiary who is not receiving continuation coverage. The required payment for each continuation coverage period for each option is described in the Election Form sent by Businessolver or on the rates page.

If you sign up for COBRA continuation coverage, you can switch to a Marketplace plan during a Marketplace open enrollment period. You can also end your COBRA continuation coverage early and switch to a Marketplace plan if you have another qualifying event, such as marriage or the birth of a child, through a special enrollment period.

NOTE: If you terminate your COBRA continuation coverage early without another qualifying event, you'll have to wait to enroll in Marketplace coverage until the next open enrollment period and could end up without any health coverage in the interim.

Once you've exhausted your COBRA continuation coverage and the coverage expires, you'll be eligible to enroll in Marketplace coverage through a special enrollment period, even if Marketplace open enrollment has ended. If you sign up for Marketplace coverage instead of COBRA continuation coverage, you cannot switch to COBRA continuation coverage under any circumstances.

Plan Members who lose eligibility for group life insurance coverage with the State of Montana Benefit Plan (State Plan) are eligible to port or convert their life insurance coverage to an individual policy with BlueCross BlueShield of Montana (BCBSMT) by making an application to BCBSMT. The deadline to apply and pay premiums for portability is 31 days after employment terminates. For conversion, the deadline to apply and pay premiums is 31 days after coverage was reduced or ended. Please note the termination date for employment may differ from the termination date for coverage.
Portability allows eligible insured employees to "port" (or buy) Group Life Insurance coverage when they are losing coverage due to voluntary or involuntary termination of employment. The portable group insurance coverage offers group term life for members and their dependents.
Conversion allows eligible insured employees to convert some or all of their Group Life coverage to an individual whole Life insurance policy when their coverage is reduced or terminated for any reason other than non-payment of premiums.

Contact BCBSMT

The Marketplace offers "one-stop shopping" for finding and comparing private health insurance options. In the Marketplace, you could be eligible for a new kind of tax credit that lowers your monthly premiums and cost-sharing reductions (amounts that lower your out-of-pocket costs for deductibles, coinsurance, and copayments) right away, and you can see what your premium, deductibles, and out-of-pocket costs will be before you decide to enroll.
Through the Marketplace, you'll also learn if you qualify for free or low-cost coverage from Medicaid or the Children's Health Insurance Program (CHIP). You can access the Marketplace for your state at healthcare.gov.
Coverage through the Health Insurance Marketplace may cost less than COBRA continuation coverage. Being offered COBRA continuation coverage does not limit your eligibility for coverage or for a tax credit through the Marketplace.

When considering your options for health coverage, you may want to think about:
  • Premiums: Your plan can charge up to 102% of total plan premiums for COBRA coverage. Other options, such as coverage under a spouse's plan or through the Marketplace, may be less expensive.
  • Provider Networks: If you're currently getting care or treatment for a condition, a change in your health coverage may affect your access to a particular health care provider. You should check whether your current health care providers participate in a network as you consider health coverage options.
  • Drug Formularies: If you're currently taking medication, a change in your health coverage may affect your costs of medication - and in some cases, your medication may not be covered by another plan. You should check whether your current medications are listed in drug formularies for other health coverage.
  • Severance payments: If you lost your job and got a severance package from your former employer, your former employer may have offered to pay some or all of your COBRA payments for a period of time. In this scenario, you should contact the Department of Labor at (866) 444-3272 to discuss your options.
  • Service Areas: Some plans limit their benefits to specific service or coverage areas - so if you move to another area of the country, you may not be able to use your benefits. You should check whether your plan has any service or coverage area limitations or other similar limitations.
  • Other Cost-Sharing: In addition to premiums or contributions for health coverage, you probably pay copayments, deductibles, coinsurance, or other amounts as you use your benefits. You should check the cost-sharing requirements for other health coverage options. For example, one option may have much lower monthly premiums, but a much higher deductible or higher copayments.

First Payment for Continuation Coverage

If you elect continuation coverage, you do not have to send any payment for continuation coverage with the Election Form. However, you must make your first payment for continuation coverage within 45 days after the date of your election. (This is the date the Election Notice is post-marked, if mailed.) If you do not make your first payment for continuation coverage within those 45 days, you will lose all continuation coverage rights under the Plan.
Your first payment must cover the cost of the continuation coverage from the time your coverage under the State Plan would have otherwise terminated up to the time you make the first payment. You are responsible for ensuring that the amount of your first payment is sufficient to cover this entire period. You may contact the COBRA Plan Administrator, Businessolver, to confirm the correct amount of your first payment.
Send your first payment for continuation coverage to:
State of Montana (c/o Businessolver.com)
PO Box 850512
Minneapolis, MN 55485

Periodic Payments for Continuation Coverage

You will be required to pay for continuation coverage for each subsequent month. Under the Plan, periodic payments for continuation coverage are due on the first day of each month. If you make a periodic payment on or before its due date, your coverage under the Plan will continue for that coverage period without any break. Businessolver will send you payment coupons to submit payment for these coverage periods.

Grace Period for Periodic Payments

Although periodic payments are due on the first of the month, you will be given a grace period of 30 days to make each periodic payment. Your continuation coverage will be provided for each coverage period as long as payment for that coverage period is made before the end of the grace period for that payment.
However, if you make a periodic payment after its due date but within its grace period, your coverage under the Plan will be suspended as of the due date and then retroactively reinstated (going back to the due date) when the periodic payment is made. This means that any claim you submit for benefits while your coverage is suspended may be denied and may have to be resubmitted once your coverage is reinstated.
If you fail to make a periodic payment before the end of the grace period for that payment, you will lose all rights to continuation coverage under the Plan. You are responsible for remitting payment on time, whether or not payment coupons are received.
Send your first payment, and all periodic payments for continuation coverage to:
State of Montana (c/o Businessolver.com)
PO Box 850512
Minneapolis, MN 5548
You may be able to get coverage through the Health Insurance Marketplace at a lower cost than COBRA continuation coverage.

You have 60 days from the time you lose your job-based coverage to enroll in the Marketplace. That is because losing your job-based health coverage is a "special enrollment" event. After 60 days, your special enrollment period will end, and you may not be able to enroll, so you should take action right away. In addition, during what is called an "open enrollment" period, anyone can enroll in Marketplace coverage. To find out more about enrolling in the Marketplace, such as when the next open enrollment period will be and what you need to know about qualifying events and special enrollment periods, visit healthcare.gov.