Consolidated Omnibus Budget Reconciliation Act (COBRA)

In order to be eligible for continuation coverage under COBRA, you must meet the definition of a Qualified Beneficiary. A Qualified Beneficiary is any of the following persons who were covered under the Plan on the day before a qualifying event:

• A covered participant who loses coverage due to termination of employment (other than termination for gross misconduct) or reduction in work hours. Termination of employment includes, but is not limited to, voluntarily quitting, layoff, and lack of work due to a work location closure.
• The spouse and/or dependent children of a covered participant who are covered under the plan and who lose coverage as a result of any of the following qualifying events:
  • The death of a covered employee;
  • The termination of a covered employee (excluding termination due to gross misconduct);
  • The divorce or legal separation of the covered employee from his or her spouse;
  • A dependent's ceasing to qualify as a "dependent child" under the terms of the plan; or
  • The covered employee becomes entitled to Medicare benefits. In accordance with the COBRA, if coverage under the Plan terminates, a participant and the participant's covered dependents may be eligible to continue coverage at their own expense for a limited period. This section describes coverage continuation rights under federal law. Some state laws may offer additional COBRA benefits. For more information, review the Plan's Evidence of Coverage booklet.

Federal law also enables a participant's dependents to continue health insurance if their coverage ends due to a qualifying event. The participant must elect coverage according to the rules of the Leidos Plans. Under the Plan, Qualified Beneficiaries who elect COBRA continuation coverage must pay the Plan's full cost of providing continued coverage, plus an additional 2% administrative fee (totaling 102% of the premium). Continuation is subject to federal law, regulations, and interpretations.

To continue coverage for medical, dental, vision, healthcare FSA and/or EAP, if applicable, it is the participant's (or a family member's) responsibility to update Workday or notify Employee Services within 31 days of a divorce, legal separation, dissolution of domestic partnership, or a child losing dependent status.

If a participant wants to continue coverage, they can elect COBRA online or mail their election directly to the COBRA administrator. Information to enroll will be included in the COBRA Notice mailed to that participant’s home address on file. If a participant has any questions, they should contact the COBRA administrator's Member Support Team at the number indicated on the notification letter.

The participant must elect this coverage continuation within 60 days from the date the participant's Leidos medical coverage terminates or the date of notification, whichever is later. Once elected, the participant has 45 days from the date he or she elected COBRA to pay all of the premiums back to the date he or she would have lost Plan coverage under the Plan. The participant will be charged the Plan's full cost of providing continued coverage, plus an additional 2% administrative fee (102% of the premium). Coverage is retroactive to the date the participant’s coverage ended. If the participant does not make the first payment for continuation coverage within those 45 days, they will lose all continuation coverage rights under the Plan.

Each Qualified Beneficiary has a separate right to elect continuation coverage. For example, a spouse may elect continuation coverage even if the participant does not. Continuation coverage may be elected for only one, several, or for all dependent children who are Qualified Beneficiaries. A parent may elect to continue coverage on behalf of any dependent children. The employee or the employee’s spouse can elect continuation coverage on behalf of all of the Qualified Beneficiaries.

*To be eligible for the additional 11 months coverage due to disability, the participant must provide the plan administrator with a Social Security Disability Award (SSDI) letter. This SSDI letter must be provided to the plan administrator during the first 18 months of COBRA; must indicate that the onset of the disability was within the first 60 days of COBRA coverage; and must be provided to the plan administrator within 60 days of the later of 1) the SSA's determination of disability (the date of the SSA award letter); 2) the date of your qualifying event; 3) the date of your loss of coverage; or 4) the date you were notified of the requirement (the date of your qualifying event letter). A participant who qualifies for the disability extension will be charged the Plan's full cost of providing continued coverage, plus an additional 50% administrative fee (150% of the premium). If the Qualified Beneficiary is determined by the SSA to no longer be disabled, they must notify the plan administrator of that determination within 30 days of the SSA's decision.

When Will COBRA Coverage End

The coverage period begins on the date of the qualifying event and ends upon the earliest of the following:

• 18 months in the case of termination of employment, layoff, or work force reduction;
• 24 months in the case of military leave of absence;
• 29 months in the event of a disability, according to Social Security;
• 36 months in the event of legal separation, divorce, or death of the employee;
• 36 months in the event of all other qualifying events;
• Failure to pay any required premium when due;
• The date a covered participant, under the continuation program, becomes covered under another group plan or Medicare — one that does not impose any pre-existing condition limitations on the coverage; or
• The date that Leidos no longer provides a group medical plan to any of its employees

The participant must apply for this coverage continuation within 60 days from the date the participant's Leidos medical coverage terminates or the date of notification, whichever is later. The participant then has 45 days from the date of the COBRA election to pay all of the premiums back to the date he or she would have lost plan coverage. The participant will be charged the plan's full cost of providing continued coverage, plus an additional 2% administrative fee (102% of the premium).

If the participant wants to continue coverage through COBRA, please contact the number indicated on the notification letter, or, if eligible due to divorce, legal separation, dissolution of domestic partnership, or loss of dependent status, contact Employee Services for more information.

Disability

To be eligible for the additional 11 months of coverage due to disability, the participant must provide the Plan Administrator with: a Social Security Disability Award (SSDI) during the first 18 months of COBRA indicating the onset of the disability was within 60 days of losing coverage; and the Plan Administrator is informed of that within 60 days of receipt of the Notice of Award letter from Social Security by receiving a copy of that letter. A participant who qualifies for the disability extension will be charged the plan's full cost of providing continued coverage, plus an additional 50% administrative fee (150% of the premium).

Second Qualifying Life Events

If a current COBRA covered participant experiences a second qualifying life event during the initial 18- or 29-month COBRA coverage period, the covered spouse/domestic partner and/or dependent children may receive up to a maximum of 36 months of coverage from the initial qualifying event date. A participant will only be entitled to an extension if the initial qualifying event was the covered employee’s termination of employment or reduction in hours, and the same event would have caused a loss of coverage under the Plan if it were the original event.  The extension may be available to the covered spouse/domestic partner and /or dependent children for one of the following reasons:

1. divorce or legal separation from the covered employee; or
2. the dependent child no longer meets the definition of a “dependent” according to the terms of the Plan(s); or
3. the covered employee becoming entitled to Medicare benefits; or
4. the death of a covered employee.

You must notify the COBRA administrator of the second qualifying event within 60 days of the event and before the applicable 18 or 29 month period of continued coverage end. You will not be entitled to the extension if you fail to provide timely notice.

The following table summarizes COBRA benefits under the Leidos Plans:

Participants that lose health coverage as a result of an Open Enrollment action will not receive COBRA information.

If the qualifying event is a reduction in the covered employees hours, termination of their employment, or eligibility for Medicare benefits, the employer must notify the plan administrator of the qualifying event. 

Otherwise, it is the Qualifying Beneficiary’s responsibility to notify Employee Services within 31 days after the later of (1) the date of the qualifying event; and (2) the date on which the Qualified Beneficiary loses (or would lose) coverage under the terms of the Plan as a result of the qualifying event, when the qualifying event is a divorce, legal separation, or child's losing dependent status.

If the Qualifying Beneficiaries fail to notify the plan administrator of these events within the 31-day period, the affected Qualified Beneficiary will lose the opportunity to continue coverage under COBRA. If a participant is continuing coverage under COBRA, they must notify the COBRA administrator within 60 days of the birth or adoption of a child.