Open Enrollment and COBRA notices

[Guest susanyb]

During the recent EBIA tele-web seminar one of the poll questions was "If a spouse or child is dropped from coverage at open enrollment, do you send COBRA information with the HIPAA Certificate?"

Of those responding 50 said yes and 209 said no. Our Company has never COBRA'd those voluntarily dropping coverage because we made them sign a waiver form.

How is everyone else handling this situation. As can be imagined - we're talking about a lot of extra work.

Your responses please. Thanks.

[Sandra Pearce]

Dropping coverage, even in anticipation of a qualifying event such as a divorce, is not a COBRA qualifying event. We do not offer COBRA coverage when an employee drops dependent coverage.

[Guest Matt J]

I have only seen it in a case where the client's dependent age limit was until the end of the year in which they turn 19 or 25 if FTS. So the child would essentially be dropped at open enrollment. But regardless, it would be the employee's responsibility to inform the employer/administrator the reason for the drop if they were interested in COBRA.

In this case, we (the administrator) sent letters in the open enrollment packets highlighting the fact that employees would need to call to inform us if the child was dropped due to age and thus eligible for COBRA.

[Guest kowen]

Sandra: Wouldn't a spouse who is dropped in anticipation of divorce eventually become entitled to COBRA as of the date of the divorce according to Sec 4980B-4 Q&A 1?