Hi,

I want to make sure I understand the COBRA process from an employer's standpoint.

I know that an employee will be termintated at the end of this month. I have prepared a COBRA explanation and election package. I have noted that her health insurance coverage will cease on the day after her final date of employment. I have included what her total premium amount is (for employee and spouse as that is what she is currently under). I explain that due to the AARA regulation she will only be responsible for 35% of the premium amount for the first 9 months of the total 18 month period. Also, included are the forms for her to elect or waive coverage.

I will make sure that this is sent out so that she recived it no later than 14 days from her termination date. I will let her know that she has 60 days to elect coverage from the later of either this notification packet or her termination date.

I will then make sure the insurance providers are notified both of the termination date and if she elects COBRA. I think that's all that is required.

Now, I do have a question. The current health insurance plan the employee has is thru Anthem and includes Health and Vision combined in the total premium. Is she eligible then to maintain health and vision coverage or does COBRA only apply for solely health coverage? Also, Anthem has a life coverage, which is billed on a separate invoice so I do not think COBRA applies to that.

I thought COBRA would only include the Health insurance, but I spoke with my broker and he indicated that I need to give this employee the option of electing Health or Vision or both.... IS the correct?? I thought COBRA only provided for Health insurance so I would think I would just sent her the premium total for Health and exclude the vision. Does anyone know where I can find this specific information? I have read a lot on the DOL site, but nothing says what to do if Vision is included in the Health insurance plan...

Thanks for your help!!!!

Yes, that is correct. COBRA applies to "group health plans". A Vision plan is considered a group health plan, as would be a dental plan if you have one. You used to be able to require the coverage bundled, but you can no longer do that and they must have the option of taking either coverage. I get a lot of people that just elect our Dental COBRA, as it is affordable, whereas medical COBRA is not.

Another question I have come across. Will the AARA premium reduction apply to both medical and vision and dental (if the dental was applicable to my situation)? Or, does that reduction onlu apply toward medical insurance premiums only?

Thanks!