Change in health insurance for disabled employees.

[Guest erisa15]

Employer A does not terminate employees' employment when they become disabled. As a result, disabled employees may continue their health benefits indefinitely by continuing to pay 100% of the "premium".

Beginning in 2004, the policy will be changed. The proposed change is to terminate employment for employees who are disabled for 12 months. At that point they would be eligible for COBRA for 18 or 29 months. Existing disabled employees would be notified in 12/2003 that their employment will be terminated as of 12/31/2004 and that they would be eligible for COBRA at that time (essentially a 12 month notice).

Do you know of any reason or see any issues with making this change?

[Guest kowen]

I would send another notice after their coverage was terminated.

[Guest llerner]

All employees should be notified at least 30 days prior to the change as well. All employees with disabilities should be given notice as soon as possible however no later than 30 days (depending upon your state/size etc). The more notice the better.