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Keeping employees on health plan


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So an employer wants to create their health plan so that employees remain on the health insurance like so:

Employee is terminated at the end of the month following 31 days from the date of termination.

So if an employee is terminated on October 3, they are removed from the insurance on November 30.

They do not have a Plan Document. I am going to prepare one for them. However, this request seems odd, and possibly at odds with the insurance company's eligibility rules. Any comments, insights?

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Looks like the employer is trying to be nice by delaying the onset of COBRA by a month.

As Ivena said, first of all, check with the insurance carrier.

I'd also check how the cafeteria plan (if there is one) factors in, if at all.

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