COBRA to dependents of deceased member

[Guest JD698]

PLEASE HELP I AM DESPERATE!!!!

I have a situation here where a union member covered by the health plan divorced his wife. She is currently receiving COBRA coverage for a period of 36 months due to the qualifying event of the divorce. The couple's 3 children remained covered under the husband/member.

The husband has just passed away. The children are now entitled to COBRA as well. The mother is currently covered as an individual.

Is there any law, rule or regulation which would prohibit the Fund from or allow the Fund to switch to family coverage for the mother and the three children or must they all be covered as individuals. The individual coverage premiums combined are significantly more than the rates for family coverage.

Any help is appreciated.

Thank you.

[Sandra Pearce]

If the union plan adheres to the special enrollment provisions of HIPAA, then this would be a loss of coverage for the dependent children which would allow the mother (COBRA QB) to add the dependent children to her coverage.

[Guest JD698]

Sandra:

Thank you for responding.

So, the mother's plan would be converted to a family plan covering herself and the 3 children? What would happen to the children's coverage when the mother's 36 months of COBRA has expired as there is approximately a 10 month difference? Would the children remain covered on a family plan without the mother being covered?

[Guest b2kates]

Likely not for family coverage, but would get the same type of coverage that is offered when a dependent loses their dependency status, i.e. no longer a qualifying student, for ther remaining time period.

[Guest JD698]

So, would the children be entitled to COBRA coverage when their mother's 36 month period ends? Will they end up losing months of coverage that they are entitled to?

[Sandra Pearce]

The dependents are of course COBRA QB's due to the death of the employee. They can elect continuation coverage for up to 36 months. The mother is already a QB who could under the special enrollment provision add them to her coverage. The mother's coverage would end at the end of her maximum period. If this was our plan I believe I would have the children elect COBRA coverage (in our plan this would be at a dependents rate which is greater than an individual rate but less than employee and dependents). I would probably simultaneously have the mother file a change form to add the children to her coverage turning it into family coverage. When she lost her eligibility I would allow the children to continue for the remainder of their 36 months. This is the way I feel I would approach this. A similar situation has never occured in our plan.