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1 off health coverage to ex-Exec continuin as a 1099 consultant


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We have a self-insured medical plan. An ex-Exec (who is also continuing to work for us a 1099 Consultant for a period of 5 years) is coming off COBRA

As part of an agreement when he terminated employment, lifetime health benefits to he & his spouse on same conditions as a continuing active Exec were promised in wriiting

The COBRA 18 month period saved us from having to search for other medical coverage equivalent to our current group plan

Our benefits attorney recommended not continuing him on our self-insured plan for discrimination reasons under 105(h)

He turns age 65 end of this year. We have a fully-insured retiree plan we can put him on then but problem is spouse is only 56 and can't join that plan until she is Medicare eligible, basically another 9 years

Am finding it difficult to get group coverage for just 1 inviidual. Individual conversion plans don't have RX coverage or medical coverage similar to group plan is really hadr to match. Am looking at executive supplemental medical reimbursement insurancepolicy to suppllement

How have others handled this situation?

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Did this attorney specify what the 105(h) problems would be?

I also wonder about your retiree plan not being able to cover a spouse who is under 65. 1 spouse is by necessity younger than the other. Many people retire before age 65. Many people who do retire and are age 65 do have a spouse who is younger than age 65. You must have had this situation many times before, so How was it handled then? I cannot believe that this is the first age 65 retiree who has a younger spouse.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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Did this attorney specify what the 105(h) problems would be?

I also wonder about your retiree plan not being able to cover a spouse who is under 65. 1 spouse is by necessity younger than the other. Many people retire before age 65. Many people who do retire and are age 65 do have a spouse who is younger than age 65. You must have had this situation many times before, so How was it handled then? I cannot believe that this is the first age 65 retiree who has a younger spouse.

Problem is we still have a problem since retiree himself is only 64 until 12/1 so for next 7 or 8 months must fimd soemthign else for him as well

Perhaps putting him in 1 of our better fully-insured active health plans will do the trick- I am checking on that

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Did this attorney specify what the 105(h) problems would be?

I also wonder about your retiree plan not being able to cover a spouse who is under 65. 1 spouse is by necessity younger than the other. Many people retire before age 65. Many people who do retire and are age 65 do have a spouse who is younger than age 65. You must have had this situation many times before, so How was it handled then? I cannot believe that this is the first age 65 retiree who has a younger spouse.

Problem is we still have a problem since retiree himself is only 64 until 12/1 so for next 7 or 8 months must fimd soemthign else for him as well

Perhaps putting him in 1 of our better fully-insured active health plans will do the trick- I am checking on that

The retiree plan requires you to be eligible for Medicare Parts A &B

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  • 1 year later...

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