If you lose eligibility for the City subsidy through a reduction of hours or a paid or non-paid leave of absence, or you lose eligibility for LAwell benefits through termination, retirement, or transfer to DWP, you may be able to continue certain benefits through Direct Bill, COBRA, portability, or conversion

Direct Bill

Employees who are eligible for LAwell benefits but lose eligibility for the City subsidy may continue their benefits through Direct Bill by paying the full unsubsidized premium. Additionally, employees who do not receive enough compensation through City payroll to pay their share of benefit premiums may also continue their benefits through Direct Bill. The following benefits may be continued: 

• Medical Insurance 

• Dental Insurance 

• Vision Insurance 

• Life Insurance (for yourself and your dependents) 

• Accidental Death & Dismemberment Disability Insurance 

City employees on or off payroll may continue LAwell benefits through Direct Bill for a period not to exceed six months. After a continuous six-month period of Direct Billing, employees may continue benefits through COBRA. Direct bills will be sent to you by the Personnel Department, Direct Billing Section. Your payment must be received within 15 days of the date of the billing letter or benefits may be terminated back to the last date for which premiums were paid. 

COBRA

Employees who lose eligibility for LAwell benefits may continue their benefits through COBRA. The following benefits may be continued: 

• Medical Insurance 

• Dental Insurance 

• Vision Insurance 

If you leave the City, and in other special situations, you may be able to continue medical, dental, and vision coverage through COBRA. City employees receiving a COBRA offer pay the full premium cost of the benefit, plus any administration fee. You have 60 days from the date of COBRA notification to enroll and 45 days from your enrollment to pay your first premium to the appropriate insurance company. For more information, contact the LAwell COBRA Coordinator at 213-978-1655 when you know that you will be leaving City service. 

Portability and Conversion 

Basic and supplemental life insurance coverage can only continue through portability or conversion. AD&D insurance can only continue through portability. Click here for more information on portability and conversion. 

Benefits Not Eligible to Continue 

The Healthcare Flexible Spending Account (HCFSA), and Dependent Care Reimbursement Account (DCRA) cannot be continued while you are on leave while you are in a non-pay status, or if you lose eligibility for LAwell benefits. The HCFSA and DCRA are tax-advantaged spending accounts that provide for deductions to be taken through City payroll. Your ability to use these accounts will end when you terminate employment. You may only use any remaining balance only toward eligible expenses that were incurred up to the last day of your City employment. 

Disability coverage cannot be continued if you lose eligibility for LAwell benefits. Employees who have submitted a claim prior to losing LAwell benefits eligibility may continue to receive disability benefits through the duration of the claim. However, they are not eligible to submit new claims. Click here for more information. 

Termination, Transfer to DWP, or Retirement 

Termination 

When you end your employment with the City, voluntarily or through City action, your benefits will end the day your employment ends. You only have one option to continue your benefits — COBRA. COBRA enrollment requires you to pay the full cost of your benefit, plus any COBRA administrative fees. 

Transfer to DWP 

When you accept and begin employment with the Department of Water and Power (DWP), your LAwell benefits will end the last day of the month in which you transfer to DWP. You only have one option to continue your benefits — COBRA. COBRA enrollment requires you to pay the full cost of your benefit, plus any COBRA administrative fees. 

Retirement 

When you end your employment with the City, due to the start of your retirement benefits through LACERS, your benefits will end the last day of the month in which you retire. (A non-LACERS retirement is considered a termination.) You only have one option to continue your benefits — COBRA. COBRA enrollment requires you to pay the full cost of your benefit, plus any COBRA administrative fees. 

Leaves of Absence 

Rehire and Reinstate Employees 

Employees who terminate City employment, or who otherwise terminate LAwell benefits at any time, and subsequently return to City employment in a different plan year, are considered “Rehire” employees. Rehired employees will receive a new benefits package in the mail when they become benefit-eligible.* If you do not enroll in LAwell benefits by the deadline identified in your benefits package, you will be defaulted into the default coverage identified in your benefits package. Rehired employees do not have LAwell benefits coverage until they enroll or default into LAwell coverage. Contact the Employee Benefits Division at 213-978-1655 if you do not receive a benefits package within four to six weeks after returning to work or to confirm your effective date. 

Employees who terminate City employment, or who otherwise terminate LAwell benefits at any time, and subsequently return to City employment in the same plan year, are considered “Reinstate” employees and will have their former benefits elections reinstated once they become benefits-eligible.* Reinstate employees will receive a confirmation statement in the mail and will have a period of time to make corrections/changes to their reinstated benefits. Reinstate employees do not have LAwell benefits coverage until the LAwell program has determined the effective date. Log in to your Benefits Central Portal account, or call the Employee Benefits Division at 213-978-1655 to confirm your effective date. 

* Returning to City employment in a new job classification will not be considered as new hire employment status for benefits purposes. Benefits enrollment requirements will be reflected as a continued employment.