What are the Cobra FEHB Regulations?

Many employees that have health insurance through their employers are covered under the Consolidated Ominbus Budget Reconciliation Act (COBRA) of 1986 that temporarily continues their health benefits. Since federal employees were excluded under COBRA, the Federal Employee Health Benefits Amendment Act of 1988 was passed to provide them with the ability to continue their health coverage on a temporary basis as well. Just like with COBRA, FEHB regulations apply to eligible federal employees that choose to extend their health coverage after separating from their jobs.

FEHB Continuation Plan

• The Federal Employees Benefit Health plan is the program that provides health insurance to federal employees and under that plan includes the Temporary Continuation of Coverage feature. The FEHB regulations for eligibility to enroll in TCC include certain employees separated from federal service, their enrolled children and former spouses not eligible for continued FEHB coverage. Before employees can obtain guaranteed individual health coverage, they must exhaust their TCC eligibility first. Just like Cobra regulations, enrollees in TCC have to pay the full premium for their heath coverage, or the amount they paid plus the government's share, as well as an administrative charge of two percent.

Coverage Regulations

• Similar to COBRA regulations, employees must apply for TCC within 60 days after separating from federal service with their human resources office. FEHB group coverage is provided for an extended 31 days after the separation date and participants do not have to pay for this coverage while waiting for their TCC benefits to begin. Under the TCC program, federal employees are allowed to continue their FEHB plan for 18 months and their eligible children and former spouses can continue their coverage for up to 36 months. Federal employees will receive monthly bills for their health insurance premiums covered under TCC from their employing office.

Regulations for Children's Coverage

• Children of federal employees are no longer eligible for coverage when they turn 22 years old under FEHB regulations. It is the responsibility of the employee to notify Human Resources when their children will be ineligible for coverage so they can enroll them in the TCC plan. The child's coverage will continue at no cost for 31 days after regular coverage ends and he can also convert the FEHB policy into an individual plan with the same carrier once the TCC plan ends. Covered children do not have to provide any evidence of insurability to participate in the individual health insurance policy and only have to have to send a written request to the insurer to apply for the conversion.