Offer COBRA if never signed up but eligible?

[Guest HRM]

This may be a unique situation. I just started with a company with 3 sites in 3 different states. An ee started 11/22, was eligible to sign up for the Health and Dental plans and December 1st, and was fired a month later for poor performance. This particular ee was in charge of filling out Medical and Dental Forms. They did not fill one out for themself and therefore, did not have coverage. How do I offer COBRA to this person or do I? What are the requirements?

[KIP KRAUS]

Interesting Cituation. If coverage is non-contributory, technically the employee is covered automatically when eligible subject to being actively at work on that date. However, if coverage is contributory, they must enroll in order for coverage become effective, and typically they must do it within 31 days of becoming eligible to do so.

If this person did not enroll for contributory coverage, he/she is not entitled to COBRA unless you want to retroactively enroll the person and then provide coverage, but this would require retroactive contributions.

On the other hand, if coverage is noncontributory, you should enroll him/her on the effective date and offer COBRA.

This is the best I can come up with given the information you have provided.

[Guest kclark]

I agree with what Kip is saying, however, if this is a Section 125 plan, the Regs. state that no retroactive elections can be made, as well no retroactive deductions can be taken unless it is a birth or adoption situation.

In this case, no COBRA could be offered as the person never made an election. If you do have "default" plans as Kip stated, COBRA could be elected for those plans.