COBRA Guidelines

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires companies like Marathon Oil to offer continuation of coverage under their health plans when coverage is lost for certain reasons, such as termination of employment, divorce, or loss of dependent status. If your loss of coverage qualifies for such COBRA coverage, you should be aware of the following general guidelines.

  • You are responsible for notifying the Marathon Oil Benefits Department within 31 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 Oil notifies its COBRA vendor, UHC, 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, Dental, Vision, the Employee Assistance Program (EAP) and the Limited Health Care Spending Account (LHCSA).
  • COBRA rates can be found here.
  • UHC will send a COBRA enrollment package to the last known address on Marathon Oil's records. In the case of a dependent, this will be the address of the Marathon Oil employee/retiree, unless you have provided Marathon Oil a separate address for the dependent.
  • UHC will mail the package within 14 days of receiving the information from Marathon Oil.
  • Generally coverage can be extended for up to 18 months in the case of a loss of your employment, and 36 months in the case of a divorce or loss of dependent status. 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. A change in options may be made during the Open Enrollment period in the Fall, to be effective 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 regular premium represents only 20% of the cost. Therefore, the COBRA premium will be significantly larger than the premium for a regular plan member.)
  • When you receive the enrollment information, there is a 60 day limit to respond to UHC to elect coverage. If coverage is elected, UHC 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 Oil health plans ceases as of the day of the qualifying event, and will not be reinstated until UHC receives both a proper election and sufficient premium payment. If a provider calls to verify coverage prior to UHC’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 UHC receives the election and payment, coverage will be reinstated retroactively to the qualifying date, and any rejected claims can be then be resubmitted for processing.
  • There are certain ways to expedite the election process, so that UHC can verify coverage and claims can be processed sooner. When you receive the election packet, review it immediately and contact UHC if there are questions. You can:
    • Return the election form to UHC immediately; or
    • Return a check for the required amount at the same time the election form is sent to UHC, instead of waiting for UHC to send an invoice after they have received the election.
  • Payment for subsequent months must be received by UHC within the time frames stated on their invoices. Late payment will be cause for termination of coverage.
  • If Marathon Oil is not notified within 60 days of the qualifying event, COBRA will not be offered.

(NOTE: This document is merely meant to describe the COBRA process, and is not intended to be your official COBRA election package. If there is any discrepancy between this document and the official COBRA regulations as described in the respective plan documents, the official regulations will prevail.)

No portion of this benefits summary is intended to change the terms of the plans and policies, or the official texts that control them. If there is any inconsistency between this summary and the official texts of the plans and policies, the official texts will prevail.