COBRA Premiums for employee over 65 who then terminates.

[Guest lschaab]

Facts: Employee turns 65 in January (2003) and enrolls in Medicare A & B. Employee is actively working in January, with a single health policy in force under an experienced rated plan. Employee terminates from the employer in June (2003). Employer has published rates from the insurance carrier for active employees (single & family) and rates for individuals not working, over 65 (single over 65, 2-person medicare primary, 1 on medicare/1 off medicare and family medicare). The insurance company, by contract, is charging the over 65 rate (which is significantly higher than the active employee rate), which the former employee disputes. Does similarly situated mean that if that person satisfies the criteria for a particular rate (i.e., over 65 and not working) that it can be charged? Also, can the qualifying event be considered the fact that medicare is now primary? We are trying to justify the premium we should charge (the active single rate, which is lower or the higher medicare primary rate)?