UNC-Chapel Hill Employment Termination Insurance Benefits Summary

This article outlines the changes to insurance benefits for employees whose employment at UNC-Chapel Hill ends. Medical coverage under the State Health Plan typically terminates on the last day of the month following the month employment ends if termination occurs between the 16th and last day of the month. Affected employees receive COBRA continuation coverage information about options and costs from iTEDIUM, the State Health Plan's COBRA vendor, usually within 10 business days after termination. COBRA premiums must be paid in full plus a two percent administrative fee, with premiums paid monthly in advance. Continuation coverage under COBRA is subject to termination if the employee or dependents secure coverage under another group health plan during the covered period. Employees are advised to notify UNC-Chapel Hill Benefits upon obtaining alternative group coverage. The article further explains that retiree health insurance eligibility is contingent on retirement contributions and hire date, with employer contributions varying based on the employee's hire date and retirement plan status. Employees hired prior to October 1, 2006, may receive employer-paid premiums, while those hired on or after January 1, 2021, typically do not have retiree coverage options unless prior retirement plan contributions exist. Other insured plans provide separate continuation options post-termination, with specific instructions and contact information provided for continuation and conversion forms. Long-term disability coverage ends on the last day of employment. This guidance is intended to assist employees and insurance professionals in understanding coverage continuity and regulatory compliance concerning employment termination at a major North Carolina university.