Guest JD698 Posted January 15, 2004 Posted January 15, 2004 A union health plan, as of 1/1/04, changed to self insured from fully insured. As a result, COBRA premiums increased. What is required with respect to notifying the members on COBRA of this increase? How much notice?
Guest b2kates Posted January 15, 2004 Posted January 15, 2004 What is the plan year and what was the Cobra premium determination date? In general only permitted to change premiums on the determination date ( once in a 12 month period).
Guest JD698 Posted January 15, 2004 Posted January 15, 2004 The plan year is January 1 - December 31. I am not sure about the premium determination date. I know the premium was not changed in over a year though. If the plan send outs a notice 30 days before payment is due, is that sufficient???
Guest JD698 Posted January 16, 2004 Posted January 16, 2004 The plan year is January to December. The determination month is April. However, we were advised by the auditors that while you can only change premiums once in a plan year, you can also change the premiums if the plan itself changes. Is this accurate? Is there an actual required time frame for providing notice of a premium change? Please advise.
Guest kowen Posted January 16, 2004 Posted January 16, 2004 I agree, you can change the COBRA rate if the rate for non-COBRA participants changes.
Guest b2kates Posted January 16, 2004 Posted January 16, 2004 See Treas Reg 54.4980B-8 Q&A2 for the rules. When is the applicable premium determined and when can a group health plan increase the amount it requires to be paid for COBRA continuation coverage? http://a257.g.akamaitech.net/7/257/2422/14...r54.4980B-8.htm
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