Guest cosmo01 Posted May 30, 2003 Posted May 30, 2003 We have a situation where after 16 years of covering an employee it was determined by an independent auditor that the person was never eligible to receive benefits under the health plan. This person has since terminated employment and wants to elect COBRA. Are we now estopped from refusing to offer COBRA to this person by reason of allowing such person to participate in our health plan for the past 16 years, or can we deny this person COBRA coverage because he was never really entitled to receive any benefits under the plan? Any thoughts? Suggestions?
mroberts Posted May 30, 2003 Posted May 30, 2003 If I were you, I would offer him COBRA and be done with it. Of course, check with your insurance carrier first and see what their feeling is first. But not offering him it could be the start of a lawsuit.
GBurns Posted May 30, 2003 Posted May 30, 2003 I would say that you have overridden your plan and established the precedent that this employee IS entitled to benefits. Treating him in any other manner than you would treat another ex employee should leave you open for litigation etc which I would bet that you would lose easily. George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
Guest trudyhorn Posted May 30, 2003 Posted May 30, 2003 I completely agree with the others. Offer this person COBRA.
Kirk Maldonado Posted May 31, 2003 Posted May 31, 2003 Whether you are obligated to provide COBRA is completely independent question from whether the insurance company will provide that coverage. Kirk Maldonado
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