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COBRA Obligation When Retiree Is Covered As Active Employee


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A former employee remained on its employer's partially self-insured group health plan, at the company's expense, for 15 years following termination of employment. The company tried to purchase individual insurance for the former employee but found he was uninsurable, hence kept him on the plan. Some time after the individual reached age 65, and elected Medicare Parts A & B, the company agreed to pay for a medigap policy for one year. The medigap coverage is less extensive than the employer's group policy. Even though the former employee's medigap coverage is a unique situation and not a "group health plan" doesn't the Company have a COBRA obligation when its subsidy of the medigap policy ceases?

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