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With a new graduate in the family, you may want to evaluate your benefit
options to make sure they are in alignment with your family status.
The information below highlights those options. Can I continue my child's Duke health,
dental and/or vision insurance after graduation?
Yes. Under the federal law, COBRA, you may continue your child's
health, dental, and/or
vision insurance
for up to the earlier of 36 months or until other coverage is obtained. Unless
you elect COBRA continuation, your child's current coverage will terminate as of
the last day of the month in which the child graduates, regardless of when Duke
is actually notified of your child's change in status. The HRIC must be
contacted within 30 days of or no later than 60 days after graduation to remove
the child from your policy and to send the COBRA notification to the graduated
dependent. There will be no refund of premium for those whose notification is
later than 30 days.
You will be responsible for the full premium payment plus a 2% service charge.
If you fail to pay the premiums, coverage under COBRA will be canceled with no
option to reinstate.
After graduation, does my child remain a qualifying dependent for the Health Care Reimbursement Account?
For the graduated child to be considered an eligible dependent, you must provide
more than one-half of the child's total support for the calendar year. If this
is no longer the case, then you can change the amount contributed to the health
care reimbursement account. You must do so within 30 days from the date of the
change in family status. Contact the HRIC to make contribution changes. For more
information, please see the
Reimbursement
Accounts Web Site.
Can I maintain life insurance coverage for my graduated child? Upon
graduation, your child becomes an ineligible dependent under your existing life
insurance. To maintain a level of life insurance coverage for the graduated
child, you will need to consider conversion policies. Your options differ among
the various life insurance policies as follows:
- Supplemental Life Insurance
- Within 90 days of graduation, the child may convert the $10,000
dependent child's coverage to an adult Supplemental Life Insurance policy
with $10,000 to $50,000 of coverage at current conversion rates and without
evidence of good health.
Contact Marsh @
Work Solutions for information about conversion policies and rates. To
request that the graduated child be removed from your policy, contact Marsh
@ Work Solutions.
- Personal Accident Insurance (AD&D)
- There is no continuation option for the graduated dependent under this
policy. Remove your graduated child from the policy especially if the
removal will result in an employee only level of coverage. Contact the HRIC
for assistance.
- Universal Life
- You can maintain or remove your graduated child's coverage under your
existing policy.
Contact the Holroyd Agency or North Carolina Mutual Life Insurance
Company for a full explanation of continuation options available.
For more information, please see the Life Insurance Web
Site. What other benefit programs do I need to be aware of?
If you are insuring your newly graduated child through the Personal Casualty
Insurance (METPAY), you may choose to maintain the graduated child as a listed
driver for his/her own car, continue paying premiums if the child is an
individual policyholder, or remove the child from all coverage. If a removed
dependent needs information on coverage conversion options or other policy
changes, contact
Marsh @ Work Solutions.
Since my child has graduated, should I consider changing my tax
withholdings?
Possibly. Consider changing Federal and State tax exemptions to remove the
graduated child if he/she no longer resides with you and is no longer a
dependent for tax purposes. Also, your tax status could be affected if a
dependent removal no longer qualifies you as "Head of Household".
New federal and state tax forms can be accessed from the
Web Tools and Forms page.
The "life event series" overview is intended to
highlight some of the benefit options to be considered due to a change in family
status. It is not designed to substitute for an official plan document. If there
is a conflict between this web site and the official plan documents, the official
plan documents will govern in all cases. Duke reserves the right to change or
terminate these plans or your eligibility for benefits under the plans at any
time.
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