COBRA Insurance Facts
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Phone number for COBRA information call 1-800-482-4105
UPDATE!!!! 12pm Monday 4/30 By now you should have recieved information
for termination of Health Insurance from Lockheed....
Lockheed Martin is obligated to mail you information on COBRA continuation of medical coverage. If Lockheed Martin cancels your medical coverage on April 23rd, you have 60 days to elect COBRA coverage to continue your insurance protection. Then you have 45 days from the date you elect coverage to pay for it. If you don’t need to use any medical services (within the election and pay period), there is no need to pay anything. If the Labor Dispute is resolved within this time frame, and there will be no need for any out-of-pocket expenses to continue your coverage. Typically, the Union insists the COBRA premium or other health care expenses are paid by the Company as part of any strike settlement.
If you absolutely need the coverage because of a health concern, then you should elect coverage right away. However, you have 45 days from the date you elect coverage to pay the premium. Coverage will not show active until payment is received.
If you only need a doctor’s office visit or other minor checkup, you can do so and just pay for the office visit and not elect to pay the COBRA premium. Chances are the office visit will be much cheaper than the COBRA premium (see Q&A below for details). You can submit for repayment when our insurance is reinstated.
It is our recommendation you elect COBRA insurance and wait to pay until you use it (within specified time limits). The Company may try to imply you need to pay this premium immediately in an effort to put pressure on you to accept less in a revised contract offer. Lockheed Martin will send out lots of information on COBRA, but just keep in mind what your rights are.
You need to do what fits your needs and makes you feel comfortable. Again, we can’t predict when this labor dispute will end, so you need to make the decision that is best for your individual situation.
Frequently Asked Questions About Cobra
When my normal insurance expires on April 23rd, how long do I have to elect COBRA coverage?
Cobra has 14 days tomail your benefits package to you. You have 60 days from the date coverage expires(April 23rd) to decide if you want COBRA coverage. This gives you until Jun 22nd (last date to get it postmarked) to make that decision. We recommend you send the election of coverage via certified or express mail. Keep in mind once you elect coverage, it will be retroactive to April 23rd.
If I elect coverage, how long do I have until the first premium is due?
The first payment must be received within 45 days after you elect coverage. If the Labor Dispute is settled before then, you won’t have a payment unless you have to use your coverage.
If I have elected COBRA coverage and have not made a payment, can I go to the doctor?
Yes. Inform your doctor you have elected COBRA. There may be a week or two before insurance comes through, but it will be retroactive. Most doctors will cooperate and if insurance initially rejects it, it can be resubmitted. Coverage does not officially begin until payment is received by Lockheed Martin and it will be retroactive to April 23rd.
Do I have to elect COBRA coverage for my entire family or could I just choose COBRA for the member who needs it?
You can select COBRA for any or all members of your family. For example, if your spouse was going through cancer treatments and other family members were healthy, you might only select your spouse for COBRA.
Will I be reimbursed if I make a COBRA payment or out-of-pocket medical expenses?
Typically, in the strike settlement agreement, the Union insists that your health care coverage be made whole as though there was no interruption. If a person paid COBRA or out-of-pocket medical expenses because of a lapse in coverage, they would be reimbursed for that expense as though there was no interruption in coverage. While this is up for negotiation, it has typically been in all our strike settlements.
If I elect coverage, but have not paid before the strike is settled, would I still need to pay?
Again, the Union typically insists that in the strike settlement agreement your health care coverage be made whole as though there was no interruption. Therefore, you would not need to pay.
If I only need an office visit for a sick child, can I just pay for the visit rather than electing COBRA?
Yes, that is an option. If you decide to pay the office visit (which is much cheaper than COBRA), be sure to ask for a cash discount (the same discount given to insurance companies which is substantially less than the regular rate). If after the doctor visit, you decide to elect COBRA coverage because more visits or tests are required, you could file a claim to recover what you have paid.
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