COBRA and Conversion to an Individual Medical Policy
When you terminated employment, a number of options were available for continuing your medical coverage. If you satisfy the eligibility requirements for coverage under the Company's Retiree Medical Plan (see "Eligible Retirees"), you and your eligible dependent are eligible for medical coverage under the Company's Retiree Medical Plan and for COBRA continuation coverage under the Health Care Plan for Active employees. This Summary of Benefits Handbook explains the options available to Retirees only.
Although COBRA coverage must be offered to you and your dependents at termination of employment, most new retirees and their dependents opt for medical coverage through the Retiree Medical Plan for a number of reasons: Retiree Medical Plan coverage may continue for a longer period of time than COBRA coverage and the Company currently pays a portion of the premium for Retiree Medical Plan coverage. (For additional information, see Plan Amendment and Termination in the ERISA Information subsection of the Rules, Regulations & Administrative Information section of this Handbook.) Retirees and their eligible dependents who select COBRA continuation coverage must pay the entire premium for the coverage.
Note: If you are not a retiree and you do not satisfy the eligibility requirements for the Retiree Medical Plan, then you and your dependents are offered COBRA coverage under the Health Care Plan for Active Employees followed by conversion of your medical coverage to an individual insurance policy. Your rights to COBRA coverage and individual conversion coverage are explained in the Summary of Benefits Handbook for Management and Administrative & Technical Employees or in the Summary of Benefits Handbook for Employees Represented by the IBEW, ESC, or SEIU.
Dental and Vision Benefits After Retirement
Dental and vision benefits are not available to any former employees under the Retiree Medical Plan. Your dental and vision coverage ended when you terminated employment, unless you or your eligible dependents elected to continue these benefits by electing COBRA continuation coverage for these benefits under the Health Plan for Active Employees. If you or your eligible dependents elected COBRA coverage, these benefits may extend for up to 18 months after your termination of employment.
Your eligible dependents may be able to extend dental and/or vision benefits for up to 36 months from the date of your termination of employment if they elect COBRA coverage and, within 18 months of your retirement, your dependent becomes ineligible for coverage because of your death, divorce, legal separation, termination of domestic partnership or, in the case of dependent children, because they no longer meet the eligibility requirements for dependent coverage.
More Information About COBRA
You or your eligible dependents may obtain detailed information about COBRA coverage by contacting the PG&E Benefits Service Center at 866-271-8144 (open weekdays from 7:30 a.m. to 5 p.m. Pacific time). Please allow one business day for a response.
Certificates of Creditable Coverage
When you lose coverage under the Company Health Care Plan for Active Employees, you will receive a "certificate of creditable coverage", even if you are eligible for immediate coverage under the Retiree Medical Plan. You will also receive a "certificate of creditable coverage" if you lose coverage under the Retiree Medical Plan.
The certificate states the period of time that you were covered under the health plan, including any period of coverage through COBRA. Another group health plan or individual insurance carrier may request a copy of the certificate and may reduce its pre-existing condition exclusion period, if you can establish that you had prior health care coverage that meets certain requirements.
The Certificate of Creditable Coverage is sent to former Company health plan participants and beneficiaries by Ceridian CobraServ, the Company's third-party COBRA administrator. Please keep a copy of the Certificate with your important documents.