QDP confusion - do you give COBRA notification at time of enrollment

[Guest robkt]

We have a self insured health plan that covers QDP's. As a "dependent" do you give COBRA notification at time of enrollment? By giving the COBRA notice - are we saying that he is entitled to COBRA? Partner/employee has just asked us to eliminate coverage for his QDP because of cost. Has anyone else encountered this? Any advices?

[KIP KRAUS]

robkt:

I don't recall seeing anything in the COBRA regs. that requires extending COBRA coverage to any domestic partners. Even though you allow coverage to actives employee's partners,it's my understanding that you do not have to offer COBRA to them, only the employee.

[Guest AHayhow]

I am a little confused... don't you have to offer Qualified Beneficiaries the same coverages as active employees. Therefore, if you covered the domestic partner while the employee was active, aren't you required to offer that coverage after the employee's employment has terminated (or some qualified change has occurred)?

Thanks

[Kirk Maldonado]

According to the definition of a "Qualified Beneficiary", domestic partners would not have COBRA rights. A QB must be a spouse or dependent child of a covered employee.

[Steve72]

I agree with Kirk. The "Defense of Marriage Act" made clear that, for Federal purposes, domestic partners would not be extended the same rights as spouses.

[Mary C]

Personal experience with DOL backs up no COBRA for DP's. A former employee called the DOL because we did not offer DP COBRA. In our converstion with them, they concurred that the regulations only cover legal spouses and dependent children, not domestic partners. Similarly, if the plan allows you to enroll your dependent parents on the plan, they would not be eligible for COBRA either.

[Sandra Pearce]

We have all employee's sign a document (provided additional to the SPD although included in the SPD) defining an eligible dependent in our plan. We do allow domestic partners and the document states that Domestic Partners will be regarded as eligible dependents under the Plan, with the same rights as legal spouses, with the exception that they will not be extended COBRA continuation privileges upon termination of coverage.

Also stes that children of a Domestic Partner may be considered eligible on the same basis as children of a legal spouse, with the same rights as children of a legal spouse, with the exception that they will not be extended COBRA continuation privileges upon termination of coverage. DP's are not sent the initial COBRA notice since they would not be eligible for COBRA continuation in our plan. By having them read and sign the definition document they are put on notice that there will be no COBRA coverage offered.

[Guest llerner]

Basically neither the Federal government nor the tax code recognize domestic partners in cafeteria plans, 401(k), Federal regs including COBRA as dependents for tax purposes. In California, domestic partners are recognized as same sex with some stipulations (to help retirees stay here, I imagine- political reason) and in a cafeteria plan for example, any group insurance for domestic partners premium paid by an employee must include in Federal tax base(don't recognize) but excludes CA income tax for domestic partner for same sex partner, EXCEPT IF either one is receiving social security benefits or medicare under or over 65 - then they can be of the same sex - this is what is recognized by the state of CA. Group insurance will depend on the employer if want same sex only or opposite covered as an employee's dependent. The federal government currently recognizes only married partners and this would include Federal Mandates such as COBRA and anything that falls under the IRC codes etc.

This becomes very confusing for people because under Federal Tax Code a parent can be included in a Cafeterua POlan health care reimbursement acccount if employee claims mom/dad/grandma etc as a dependent on your 1040 (provide over 50% support) or dependent care account if they live with you for dependent day care. On the other hand, for group insurance, the insurance company makes the rules - with few exceptions for large groups with much clout- parents are not permitted as dependents for employees on their group insurance but in many states, the domestic partners can be listed as dependents on the group insurance and sometimes at the employers' option, sometimes by state mandate. It helps to think of Federal rules as Tax Code rules ( can you deduct it on your taxes) and group insurance as "political" rules or insurance company customary rules.