Continuing Coverage with COBRA

Qualified beneficiaries who may continue coverage: Yourself, your spouse and dependent children

Duration of coverage: Up to 18 months

Qualified beneficiaries who may continue coverage: Ex-spouse and/or dependent children

Duration of coverage: Up to 36 months from initial qualifying event

Qualified beneficiaries who may continue coverage: Yourself, your spouse and dependent children

Duration of coverage: Up to 29 months; months 1-18, 102% of the premium; months 19-29, 150% of the premium

Qualified beneficiaries who may continue coverage: Spouse and/or dependent children

Duration of coverage: Up to 36 months from initial qualifying event

Qualified beneficiaries who may continue coverage: Yourself, your spouse and dependent children

Duration of coverage: Up to 18 months

For NCFlex benefits, an employee must work 20 or more hours per week. If your hours were reduced to under 20 per week, you would lose eligibility and would have the option to continue through COBRA. 

North Carolina Retirement System offers retirees options for dental, vision and identity theft coverage through Pierce Insurance. More information can be found at ncretiree.com. Active state employees and retirees can seek additional coverage options with a State Employees Association of North Carolina membership at seanc.org. The North Carolina Governmental Employee's Association can be a resource for benefits pending membership as well; learn more at ncrgea.com. 

You should receive a COBRA offer within 30 days of leaving employment or losing eligibility. You have 60 days from the date of the offer to elect coverage. 

Your coverage will be effective retroactively back to the first of the month after your coverage ended as an active employee. 

For example, if your coverage ended as an active employee on June 30 and you elect COBRA coverage on August 15, your coverage will be retroactive to July 1. 

If you choose to continue the Health Care Flexible Spending Account through COBRA, you may continue it for one month or multiple months but not past the end of the current plan year in which you leave employment. Contributions through COBRA are paid post tax and include a 2% fee, so in some scenarios it may not be in your best interest to continue through the end of the plan year. You may decide to only contribute for only one additional month to give yourself more time to spend your available funds.

For Dental and Vision, you may want to continue for the entire allowed amount or only until you find other coverage.

If you no longer need COBRA coverage, contact your COBRA Administrator to let them know you are canceling due to enrolling in other coverage. However, if you fail to pay your monthly premium, your coverage will be automatically terminated. 

Please reach out to NCFlex at ncflex@nc.gov. In some cases, we can grant exceptions to allow you to make late payments. 

Please reach out to NCFlex at ncflex@nc.gov. In some cases, we can grant exceptions to allow you to enroll late. 

If you were reimbursed more money than you contributed to your Health Care Flexible Spending Account during your time as an active employee, you will not be offered COBRA. However, the money you were reimbursed over what you contributed is not owed back to the State of North Carolina.

No. You and your dependents must be enrolled in coverage prior to losing eligibility to be offered coverage continuation through COBRA. If a dependent was not on your plan while employed, they cannot be added under COBRA.

As stated above under "Coverage Provisions & Qualifying Events", contributions into the Health Care Flexible Spending Account through COBRA can be continued only through the end of the plan year in which you last participated as an active employee. If you have elected COBRA and contribute through December 31 of the plan year you separated, or you were an active employee and retired January 1 and elected COBRA, you have up to 18 months to utilize your roll over funds, if available. 

Below are some examples of how COBRA may be continued and utilized: 

Scenario 1: 

You leave employment or retire October 31, 2024 (retirement would be effective November 1) and had a HCFSA election of $1,200 plus a roll over from 2023 of $300. You have contributed in $1,000 in 2024 and have only spent $500 of the current year's election and none of the rollover. You are offered COBRA and elect to continue the HCFSA. You can only contribute into the account for the remainder of 2024, which would be $102 in November and $102 in December. The amount is the monthly amount you were paying while active, on a post tax basis, plus a 2% fee. If you decide to pay through December, you will then be allowed to roll over up to $610 into 2025 and use the funds for 18 months starting the month after you left employment. This would mean you would have through April 2026 to use the rollover funds. In this scenario, it would be best to try to use anything over $610 in your account by December 31, 2024. 

Any claims dated in 2024 must be submitted to P&A by March 31, 2025 to be reimbursed. This would only be for claims you paid out of pocket and not with the HCFSA Convenience Card. 

Scenario 2: 

You leave employment or retire March 31, 2025 (retirement would be effective April 1) and have an HCFSA election of $1,200. You have contributed in $300 and have only spent $25 of the current year's election. You are offered COBRA and elect to continue the HCFSA. Remember that contributions into COBRA HCFSA are post tax and include a 2% fee. In this scenario, you may only want to continue the plan for one or two months, giving yourself more time to use the remaining funds. Although you have only contributed in $300, you can use up to the $1,200 election during the time your coverage is active. 

Consider any claims you have not yet submitted that you incurred January 1, 2025 - March 31, 2025. You will have until March 31, 2026 to file claims dated during this period or any period you extend through COBRA in 2025. You may find that you have enough claims (not originally paid for with the HCFSA Convenience Card) that you do not need to choose COBRA. 

Scenario 3: 

You retire January 1, 2025 or leave employment in December 2024. You have paid in the entire year of 2024 for the HCFSA but have remaining funds. You will be offered COBRA, but will not be allowed to make any additional contributions in 2025 since you were not an active employee in 2025. If you elect COBRA, you will have a roll over of up to $610 into 2025 and will have 18 months to use the funds starting January 1, 2025.