Your Peace of Mind:

COBRA

Introduction

If you or a covered dependent loses coverage in a Marathon Petroleum Company plan due to loss of employment or another qualifying event (such as divorce or loss of dependent status), you or your dependent may be eligible to continue coverage for a period of time under COBRA. You’ll want to familiarize yourself with the COBRA options.

COBRA OverviewHelp

If eligible, you can elect COBRA coverage for the following plans:

  • Medical
  • Dental
  • Vision
  • Employee Assistance Program (EAP)
  • Health Care Spending Account (HCSA)
  • Marathon Petroleum Health Reimbursement Account (MPHRA)

You must notify the Marathon Petroleum Benefit Service Center within 60 days of the qualifying event to be eligible for COBRA, and you or your dependent must enroll in coverage within 60 days of receiving a COBRA notice.

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires companies to provide continuation of health care when coverage is lost as a result of certain events such as termination or change in dependent status.

COBRA Guidelines

There are specific steps that must be followed to qualify for and enroll in COBRA coverage. If you or a dependent loses coverage under the Marathon Petroleum health plans for certain reasons, such as termination of employment, divorce or loss of dependent status – and the loss of coverage results in qualification for COBRA – you should be aware of the following general guidelines.

  • You are responsible for notifying the Marathon Petroleum Benefits Service Center within 60 days of the qualifying event. This will ensure that you can make applicable coverage changes to your benefit plans at the appropriate coverage levels.
  • Marathon Petroleum notifies its COBRA vendor, PayFlex, on a weekly basis of those who have qualifying events for COBRA eligibility.
  • If you (or your covered dependents) were covered by the plan(s) at the time of the qualifying event, COBRA will be offered for the following plans: Health Plan (medical), Dental, Vision, Employee Assistance Program (EAP), Health Care Spending Account (HCSA) and Marathon Petroleum Health Reimbursement Account (MPHRA).
  • PayFlex will send a COBRA enrollment package to the last known address on Marathon Petroleum’s records. In the case of a dependent, this will be the address of the Marathon Petroleum employee/retiree, unless you have provided Marathon Petroleum a separate address for the dependent.
  • PayFlex will mail the package within 14 days of receiving the information from Marathon Petroleum.
  • Generally, coverage can be continued for up to 18 months in the case of a loss of employment, and 36 months in the case of a divorce or loss of dependent status (to the end of the current plan year for the Health Care Spending Account). Measurement is made from the date coverage is lost. COBRA coverage must be terminated if you obtain coverage under another group health plan or Medicare prior to reaching the end of the 18- or 36-month period.
  • Coverage must be in the same option enrolled in prior to losing coverage. You can change your plan option during the Open Enrollment period in the fall, with an effective date of the following January 1.
  • The monthly premium will be 102% of the entire cost of such coverage. (Note that the Company pays 80% of the plan cost for a regular plan member, so the premium for a regular plan member represents only 20% of the total cost. Therefore, the COBRA premium will be significantly higher than the premium for a regular plan member.)
  • When you receive the enrollment information, there is a 60-day timeframe to elect coverage by notifying PayFlex. If coverage is elected, PayFlex must receive payment within 45 days of the election. The payment must be sufficient to cover the entire period retroactive back to the date of loss of coverage up to, and including, an advance payment for the upcoming month. Therefore, the first payment will likely be a multiple of two or more months of premiums.
  • Regular benefit coverage under the Marathon Petroleum health plans ceases as of the day of the qualifying event, and will not be reinstated until PayFlex receives both a proper COBRA election and sufficient premium payment. If a provider calls to verify coverage prior to PayFlex’s receipt of the election and payment, they will be told that coverage has been terminated, and any claims incurred during this period will be rejected. However, once PayFlex receives the election and payment, coverage will be reinstated retroactive to the qualifying date, and any rejected claims can then be re-submitted for processing.
  • There are certain ways to expedite the election process so that PayFlex can verify coverage, and claims can be processed sooner. When you receive the election packet, review it immediately and contact PayFlex with any questions. You can:
    • Return the election form to PayFlex immediately; or
    • Return a check for the required amount at the same time the election form is sent to PayFlex, instead of waiting for PayFlex to send an invoice after they have received the election.
  • Payment for subsequent months must be received by PayFlex within the timeframes stated on their invoices. Late payment will be cause for termination of COBRA coverage.
  • If Marathon Petroleum is not notified of the qualifying event within 60 days of the event, COBRA will not be offered.

COBRA Rates

COBRA rates are higher than regular employee rates because active employee rates are significantly subsidized by the Company. With COBRA, you pay the full cost of coverage plus a 2% administrative fee.

2017 Monthly COBRA Contributions
Plan/Option Member Only Member + Spouse Member + Children Family
Saver HSA Option $438.43 $1,020.68 $876.86 $1,395.02
Classic Option $513.06 $1,179.12 $1,026.12 $1,589.16
Dental Plan $33.13 $64.94 $70.91 $104.70
Vision Plan $7.14 $12.24 $13.26 $20.40
EAP $0 per person $0 per person $0 per person $0 per person

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