Continuation of Benefits Coverage (CBC)

Bethel University offers a “COBRA-like” benefit for employees. This extension is called Continuation of Benefits Coverage.

As an employee covered under the plan, you can elect continuation of your benefits coverage for certain benefits (health, dental, vision, life) if you lose your coverage because (1) your hours of employment are reduced, or (2) your employment is terminated for reasons other than gross misconduct.

Your spouse may elect continuation coverage, if he or she loses coverage under the plan because (1) your employment is terminated for reasons other than gross misconduct; (2) your hours of employment are reduced; (3) you die; (4) you divorce or are legally separated; or (5) you become entitled to Medicare.

Your dependent child may elect continuation coverage, if he or she loses coverage under the plan because (1) he or she loses dependent status under the plan; (2) your employment is terminated for reasons other than gross misconduct; (3) your hours of employment are reduced; (4) you die; (5) you and your spouse divorce or are legally separated; or (6) you become entitled to Medicare.

A child born to or placed for adoption with you during the continuation coverage period is also entitled to elect continuation coverage.

Under Bethel’s Continuation Benefits Coverage, you (your spouse or dependent child, if applicable) must notify the plan administrator within 60 days after:

1.  you and your spouse are divorced or legally separated or 
2.  one of your children loses their dependent status under the plan.

You (your spouse or dependent child, if applicable) will then be notified of your right to elect continuation coverage and the cost to do so. The deadline for electing continuation coverage is 60 days after the date the plan ceases to cover you or from the date you are notified, whichever is later.

If you (your spouse or dependent child, if applicable) do not elect continuation coverage, your coverage will stop. If you (your spouse or dependent child, if applicable) choose continuation coverage, the plan will provide coverage identical to that available to active employees. However, you (your spouse or dependent child, if applicable) must pay the full cost of this coverage. An administrative fee of 2%, may also be assessed. If you (your spouse or dependent child, if applicable) lose coverage under the plan because your employment was terminated or your hours of employment were reduced, then the maximum continuation period will be 18 months. If during those 18 months, another event takes place that entitles you (your spouse or dependent child, if applicable) to continuation coverage, your continuation coverage (or your spouses or dependent child's continuation coverage, if applicable) may be extended by another 18 months. However, in no event will your continuation coverage or your spouses or dependent child's continuation coverage, if applicable, extend for more than a total of 36 months from the date of the initial event.

Disability is a special issue. 

If the Social Security Administration determines that you (or your spouse or dependent child, if applicable) are disabled during the first 60 days of continuation coverage, then your continuation coverage period (or your spouses or dependent child's continuation coverage, if applicable) may be extended from 18 months to 29 months and Bethel may charge an administrative fee of 50% for any months of coverage after the first 18 months. To qualify, you (or your spouse or dependent child, if applicable) must notify the plan administrator within 60 days of the date of the Social Security determination and during the initial 18 month continuation coverage period.

Your opportunity to continuation coverage (or your spouses or dependent child's right, if applicable) ends if: (1) Bethel University ceases to provide group coverage for the above mentioned benefits to any of its employees; (2) you (or your spouse or dependent child, if applicable) fail to pay the premium within 30 days after its monthly due date; (3) you (or your spouse or dependent child, if applicable) become covered under another group plan that does not contain any exclusion or limitation with respect to any preexisting condition of such beneficiary (other than an exclusion or limitation that may be disregarded under law); (4) you (or your spouse or dependent child, if applicable) become entitled to Medicare; or (5) if you (or your spouse or dependent child, if applicable) have extended continuation coverage due to a disability and then you are determined by the Social Security administration to be no longer disabled.

If you have any questions specifically regarding Bethel’s Continuation Benefits Coverage, please contact the Office of People and Culture for explanation.