COBRA

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), eligible individuals can temporarily continue their group health benefits after experiencing certain life events, such as job loss, reduced hours, or divorce.

What is COBRA?

Continuation of Health Coverage

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.

Who administers the COBRA benefits?

Effective January 1, 2025, the NXP Benefits Service Center will administer COBRA. For questions regarding COBRA invoices and coverages in 2025, please call (888)-532-3971 or visit mynxpbenefits.com.

Where should I send payment for my current COBRA benefits?

To make payments go to Businessolver  and log in with your username and password. If you don’t know them, you may reset your username and password or register as a first-time user. Your Company Key is NXP.

Go to the Online Payments widget on your home page. From here you can review your account details or make a payment.

You should also report any qualifying life events or other events that may occur such as qualifying for Social Security benefits or enrollment in Medicare or another group health plan to your current COBRA administrator until that date.

How will I obtain my COBRA enrollment notice?

A COBRA enrollment notice will be mailed to your primary home address in Workday about 14 days after your active employee coverage has ended.

For example, if your last day of employment is January 3, then your health coverage continues through January 31.

You can expect your COBRA enrollment notice no later than February 14.

The COBRA enrollment notice mailed to your home will show your COBRA coverage options and their prices. COBRA coverage will be offered for medical (prescription drug and mental health), dental, vision, the Health Care/Limited Use Flexible Spending Account, if you were enrolled in the program as of your last day of employment.

By paying for COBRA coverage, you will continue coverage in the health care plan you were enrolled in prior to leaving NXP. In other words, you won’t be offered COBRA coverage for vision if you weren’t enrolled in vision as of your last day of employment.

COBRA coverage is “retroactive.” This means that, when you elect COBRA and pay the premium, your COBRA coverage is effective the day after your active coverage ends. This means there will be no break in coverage, even if you wait until day 59 to make your COBRA election. Of course, because the coverage is retroactive, the payment will also be retroactive.

You will continue to use your existing medical/health plan card. New cards will not be issued.

What is the COBRA Coverage Election Process?

You must make the first payment in order to activate COBRA coverage. The COBRA benefits coverage will be activated within 5-10 business days of receipt of payment but will be retroactive so there are no gaps in coverage.

Once you receive a bill in the mail, make a payment by the due date. Your first payment (due within 45 days of your election) must include your COBRA contribution for the entire period from the date active employee coverage ended through the end of the month of the payment. Subsequent payments are due on the first of the month, whether or not you receive a bill.

If the monthly contribution is not received within 30 days of the due date, coverage is permanently canceled as of the last day of the month in which you paid a contribution and cannot be reinstated.

What if I am over the age of 65 and eligible for Medicare?

COBRA coverage does not count towards creditable prior coverage for Medicare Part B, which means that when your COBRA ends and you decide to sign up for Medicare Part B after the date you originally could have joined, you will face a 10% per year for life penalty on the cost of Part B.

If you have COBRA when you become Medicare-eligible, your COBRA coverage usually ends on the date you get Medicare. You should enroll in Part B immediately because you are not entitled to a Special Enrollment Period (SEP) when COBRA ends. Your spouse and dependents may keep COBRA (if they are not also Medicare-eligible), regardless of whether you enroll in Medicare during that time. If your spouse has COBRA when they become Medicare-eligible, their COBRA coverage will end on the last day of the month prior to their 65th birthday.

What Happens If I Enroll in Both COBRA and Medicare?

If you are 65 or older when you leave NXP, you will need to enroll in Medicare because it will be your primary insurance. You can choose to waive COBRA for yourself and only enroll your dependents (spouse or children) in COBRA.

If you have COBRA when you become Medicare-eligible, your COBRA coverage usually ends on the date you become eligible for Medicare. You should enroll in Part B immediately because you are not entitled to a Special Enrollment Period (SEP) when COBRA ends. Your spouse and dependents may keep COBRA, regardless of whether you enroll in Medicare during that time.

Here are some additional links that will provide additional information about Medicare and COBRA:

What Happens When I Leave NXP and My Spouse Is Under the Age of 65?

If you leave NXP, your active employee coverage will go through to the end of the month during which you resign. Effective the 1st day of the following month, you will need to enroll in coverage through Medicare, COBRA or elsewhere. For example, if your last day at NXP is September 5th, your coverage will continue through September 30th.

In this example, you and your enrolled dependents will be eligible to enroll in COBRA effective October 1st. If you are over the age of 65, you can choose to waive COBRA and enroll in Medicare. Your dependents (spouse or children) will still be eligible to enroll in COBRA.

What if I have questions?

For questions regarding COBRA invoices and coverages in 2025, please call (888) 532-3971 or visit mynxpbenefits.com .