Cost of COBRA to EE when ER paid 100% of Premium

[Guest LLandau]

When an employer sponsors 2 welfare plans - one fully insured and one self insured - and the employer pays 100% of the premiums on behalf of the employees, what does the ER charge for COBRA continuation coverage to a terminated EE who is participating under both plans?

Any assistance is appreciated.

[mroberts]

How can an employee be participating under 2 different medical plans? I can see if one is comprehensive coverage and one is prescription, but if they are both regular medical plans, I must be missing something.

[Guest LLandau]

The employer sponsors two different welfare benefit plans. The group medical plan is fully insured. The prescription drug plan is self-insured.

[mroberts]

Do employees have the choice of whether or not they want to participate in each plan independently? Or are employees automatically enrolled in the Rx plan upon electing medical? If the plans are bundled (must be taken together), then just add the medical premium rates and the Rx equivalency rates together and this is the amount that is charged to the employee (+2% for admin if you wish).

[GBurns]

The employer charges the COBRA rates as supplied by the insurance company (if fully insured) or by the Claims Administrator (if self funded ).