COBRA continuation coverage

• COBRA coverage is only available for these health plans: medical (includes prescription drugs and basic vision), dental, behavioral health, Vision Plus Program, health care flexible spending account (Health FSA), Health Decision Support (second medical opinion service) and Healthy You.

• The health plan choices available through COBRA - including how they work, what they cover and the provider network - are the same as the health plan choices available through active employee coverage.

• You can elect COBRA coverage for the plans in which you’re enrolled on the day before your termination of employment date. So, for example, if you’re not enrolled in Chevron medical, you cannot elect COBRA medical coverage.

• You can change your plan choice when you elect COBRA coverage. For example, if you are enrolled in the HDHP as an active employee and are eligible for COBRA medical coverage, you can decide to change from the HDHP to the Medical PPO when you make your COBRA enrollment election.

• You can enroll your eligible dependents that are enrolled as your dependents in active employee coverage on the day before your termination of employment date. In addition, your dependents can only elect continuation coverage for the plans in which they are enrolled on the day before your termination of employment date. So, for example, if your dependent(s) are not enrolled in Chevron medical, you cannot elect COBRA medical coverage for those dependents.

• What happens to your deductible and out-of-pocket maximum? The health plan choices, including how they work and what they cover, don't change under COBRA. If you enroll in the same plan and enroll the same covered dependents under COBRA coverage as you have elected under employee coverage, your year-to-date accumulation toward the deductible(s) and out-of-pocket maximum(s) will continue unchanged. However, if you change plans or change who's covered, you deductible and out-of-pocket maximum status may be affected. If you have any questions about this, contact your health plan claims administrator directly for more details about your personal situation.

• COBRA coverage is available for a limited time. COBRA coverage is typically available for up to 18 months. In some cases, due to disability or subsequent qualifying events, coverage may be available up to 29 or 36 months.

• All terminated eligible employees will be offered the opportunity to enroll in COBRA, even if you’re eligible for Chevron retiree medical coverage. 

• There is a separate open enrollment period for COBRA. Typically held each November, the COBRA open enrollment period provides an opportunity for you to change your COBRA health coverage elections, including adding or dropping dependents. Changes you make during COBRA open enrollment take effect on the following January 1.  

Your active employee benefits generally end on your termination of employment date. However, if you’re enrolled in a company-sponsored health plan (like medical, dental, vision and behavioral health) your employee health coverage automatically continues until the last day of the month in which your employment ends.

• At the end of the month, your active employee health plan coverage will then be terminated.

• If you timely elect COBRA coverage, your health coverage will be reactivated, retroactive to the date your active employee coverage ended.

• Example: Termination of employment date is March 10. Active employee health coverage ends March 31. COBRA coverage takes effect retroactive to April 1.

If you make timely elections, there is no gap in coverage. However, there could be a period of time in which your active coverage has lapsed, and your COBRA coverage has not yet been reinstated. If you incur any eligible health care expenses before the plan carrier(s) have been notified of your reinstated coverage, you can submit a claim directly to your health plan administrator for reimbursement. This means you may have to pay out of your own pocket at the time of service and submit a claim to be reimbursed later once your coverage is reinstated. 

Remember, you must make an election within the 60-day enrollment period to continue coverage for you and any eligible dependents. Enrollment is not automatic. To minimize the lapse in coverage between active employee coverage and reinstatement under COBRA, make your elections and payment as soon as possible. See the Enrollment tab above for more details about the enrollment and initial payment process.

The cost for standard COBRA coverage is 102 percent of the total group cost. Standard COBRA coverage costs more than employee coverage because Chevron does not contribute to the cost of standard COBRA. This means, you’ll be responsible for paying both the employee and company contributions to coverage, plus a 2% administrative fee.

The cost for subsidized COBRA coverage is as follows:

• Chevron will continue to contribute to the cost of your medical and/or behavioral health coverage when you leave Chevron due to a qualifying severance.
• This means you will pay the same monthly premium for your COBRA medical coverage as other similarly enrolled active Chevron employees.
• The 2% administration fee does not apply to subsidized COBRA coverage. 

Your COBRA enrollment package provides more information about making payments and the applicable due dates for payments, including how to enroll in AutoPay.

If you are receiving reduced medical premiums because you have qualified for the Wellness Credit under health rewards, your Wellness Credit ends when your employment ends and doesn’t apply to COBRA – whether subsidized or not. This means if you pay $0 per month for your Chevron employee medical coverage, you will have to pay a monthly COBRA medical premium even with subsidized COBRA.

How to estimate the cost of COBRA coverage prior to leaving Chevron.

Your company-sponsored health plans (like medical, dental, vision and behavioral health) end on the last day of the month in which your employment terminates. Your active employee coverage remains terminated until you submit your COBRA elections and payment.

• All terminated, eligible employees will receive a COBRA package within 44 days of leaving Chevron, even if you’re eligible for Chevron retiree medical coverage.

• The package includes a personalized enrollment worksheet, your costs for coverage, and detailed information about enrollment procedures and payment requirements.

• The enrollment package typically arrives much faster, but you can also call BenefitConnect COBRA two - three business days after your termination of employment date to process your enrollment faster.

Your enrollment package provides personalized instructions for enrollment.

• To elect COBRA continuation coverage, you’ll call or go to the BenefitConnect | COBRA website.

• Under federal law, you have a 60-day deadline (stated on your election notice) to decide whether you want to elect COBRA continuation coverage.

• To minimize the lapse in coverage between active employee coverage and COBRA coverage, make your elections and payment as soon as possible.

• If you do not enroll by your enrollment deadline, you will lose your right to elect COBRA continuation coverage.

• If you reject COBRA continuation coverage before the enrollment deadline date, you may change your mind as long as you contact BenefitConnect | COBRA before your 60-day enrollment deadline. 

If you make timely elections, there is no gap in coverage. However, there could be a period of time in which your active coverage has lapsed, and your COBRA coverage has not yet been reinstated. If you incur any eligible health care expenses before the plan carrier(s) have been notified of your reinstated coverage, you can submit a claim directly to your health plan administrator for reimbursement. This means you may have to pay out of your own pocket at the time of service and submit a claim to be reimbursed later once your coverage is reinstated. 

You cannot be enrolled in both COBRA and Chevron retiree health benefits for the same plan at the same time. For example, you cannot be enrolled in COBRA medical and pre-65 retiree medical coverage at the same time; you can only choose one or the other.

• If you or your dependent is eligible for pre-65 Chevron retiree health coverage you must make an election to cancel/decline any pre-65 retiree health coverage that you have decided to elect under COBRA.

• You must cancel/decline applicable pre-65 retiree health coverage within 31 days of your employment termination date.

• Cancel/decline pre-65 retiree health coverage by calling the HR Service Center or on the BenefitConnect website.

Your COBRA enrollment elections are not complete, and your coverage will not be reinstated until your first payment is received in full. 

• Once you’ve made your enrollment choices, your first invoice will be sent to you in the mail. You can also use the one-time payment feature.

• You can inquire about the amount due for your first payment on the BenefitConnect | COBRA website or by contacting BenefitConnect | COBRA.

• If you don’t make your first payment in full by the deadline, you’ll lose all COBRA continuation coverage rights with respect to that qualifying event.

• You’re responsible for making sure that the amount of your first payment is correct. 

After you make your first payment for COBRA continuation coverage, you’ll have to make periodic payments for each coverage period that follows. The enrollment package you receive will explain the process for making payments and the applicable due dates for ongoing payments, including how to enroll in AutoPay.

Leaving Chevron is an important enrollment milestone for Chevron pre-65 and post-65 retiree health benefits. If you are eligible for both COBRA and retiree health benefits at the time of your termination of employment with Chevron, you will have these options for you and your eligible dependents: 

• Enroll in COBRA coverage (including subsidized COBRA) and waive Chevron retiree health benefits until you reach another enrollment milestone (if any).

• Enroll in COBRA coverage for some plans, and Chevron retiree health benefits for others (referred to as split coverage).

• Enroll in Chevron retiree health benefits and waive COBRA coverage.

• Waive both COBRA and Chevron retiree health benefits.

Split coverage allows you to mix and match between types of coverage - COBRA coverage, Chevron retiree health coverage, or a combination of the two.

• Each participant can choose between the COBRA plan or the equivalent retiree health plan (just but not both for the same plan). For example, you could enroll yourself in retiree medical but COBRA dental, but you cannot enroll yourself in both retiree medical and COBRA medical at the same time.

• The retiree can choose a different coverage type from their dependents. For example, the retiree can choose retiree coverage and the dependent, COBRA.

WARNING: The ability to split coverage provides you with more flexibility, but split coverage is not advisable for every situation. You are strongly encouraged to carefully consider all aspects of your personal situation against important health plan rules, retiree enrollment milestone rules, and Medicare rules before making enrollment decisions. We've provided a list of resources and contacts below to help you get started.

Should I enroll in COBRA first, then retiree health benefits later?
Should I split coverage between retiree health and COBRA?
Should I enroll my dependents now or later?

Unfortunately, there are no one-size-fits-all answers. There are an assortment of rules - from Medicare rules to retiree health plan rules - that will affect each person differently. For one person, enrolling in COBRA might be the best answer but for another it may not. The answer depends heavily on a variety of personal factors including:

• Your age
• The age of your eligible dependents
• Are you already covering dependents, or do you need to add them to your coverage
• Are post-65 participants already enrolled in Medicare
• If you don’t enroll at the Leaving Chevron enrollment milestone, are there other retiree health enrollment milestones you can use to enroll yourself and desired dependents

The best answer we can give is to do your research. Understanding the rules and features of each choice will help you weigh your options against your personal situation. See our suggestions below for the resources that can help you learn, ask questions, and make choices.

We suggest these resources as you start to think about COBRA vs. retiree health benefits:

• See the Special Situations section below, on this page, for key rules that specifically affect pre-65 and post-65 participants. This provides a foundation from which to start.

• Review available plan information. Watch the video, Retiree Health and Protection Benefits and fully review the Retiree Health Enrollment Milestones.

• Ask clarifying questions. Contact the HR Service Center to further discuss your personal situation including retiree benefit eligibility, enrollment choices, and enrollment milestones. If you or any of your dependents are (or will become) Medicare eligible, be sure to talk to Medicare to fully understand rules, choices and the process.

There are special U.S. Department of Labor rules that apply to COBRA participants who are Medicare eligible (either due to age or disability). These rules apply to all Medicare-eligible COBRA participants, including you and any of your enrolled dependents, as applicable. They also apply whether or not you decide to enroll in Medicare. 

There is special handling for reimbursement of covered services for COBRA participants who are Medicare eligible (either due to age or disability): 

• For Medicare-eligible COBRA participants, Medicare will be the primary payer of your medical claims.*
• Your Chevron medical COBRA coverage will automatically pay secondary.

What does this mean? As the secondary payer, your Chevron COBRA medical plan will subtract the amount that Medicare Part A and Part B should pay toward your services before paying your medical claims. Your claims are paid in this manner even if you choose to not enroll in Medicare while you're enrolled in COBRA coverage. 

Why does it matter? The amount your Chevron COBRA plan may pay toward the cost of services may be significantly reduced because your COBRA plan is automatically paying secondary. If you have not enrolled in Medicare, you could be responsible for a large portion of the cost for services (and in some cases, the total cost) that would have ordinarily been paid by Medicare. 

* Your Chevron medical COBRA coverage pays primary in the event you have Medicare due to End-Stage Renal Disease (ESRD).

The following applies to COBRA participants who:

• Are Medicare-eligible but not already enrolled in Medicare at the time of COBRA enrollment.
• Become eligible for Medicare during their COBRA coverage period (either due to age or disability)

If this applies to you and/or a dependent, you have these choices:

• Don't enroll in Medicare and continue participation in COBRA. However, don't forget the rules discussed above. Even if you don't enroll in Medicare, your Chevron COBRA coverage will automatically pay claims secondary as though enrolled in Medicare. You could be responsible for a large portion of the cost for services (and in some cases, the total cost) that’s ordinarily paid by Medicare. 

• Enroll in Medicare. If the participant decides to enroll in Medicare, COBRA will end, as per U.S. Department of Labor rules. You must contact BenefitConnect COBRA to disclose you have Medicare coverage so that your COBRA coverage benefits are terminated as per rules and requirements.

WARNING: Before making enrollment decisions, you are strongly encouraged to review Medicare.gov or contact Medicare directly to understand the complexities of your personal situation, including any potential Medicare penalties or gaps in coverage should you choose to delay enrollment to remain in COBRA coverage.

Medicare-eligible participants who are already enrolled in Medicare at the time of COBRA enrollment are allowed to enroll in COBRA coverage for the full eligibility period (typically 18 months).

Your dependents are eligible to enroll in Chevron survivor coverage if:

• They are also enrolled in Chevron COBRA coverage as your dependent as of the date of your death.
• They report your death to the HR Service Center within 60 days of the date of your death.