Refunding of Cobra premium

[Guest ambeeeant]

In this situation, the QB had a qualifying event due to a layoff on March 31, 2005. He elected Cobra coverage and paid the first two months' premiums (for April and May) with one check which he gave the employer on April 14. In May, the employee went back to work with the employer on a part time basis. According to the terms of a collective bargaining agreement, this employee's company paid healthcare coverage was reinstated retroactively back to April 1.

Since the employee was ultimately covered under the employer paid health plan for the entire period, is he entitled to a refund of the premium that he paid? If so, is he entitled to a refund for the entire period, just the month of May, or pro-rated to April 14?

[oriecat]

this employee's company paid healthcare coverage was reinstated retroactively back to April 1.

Based on how you phrased your original post, I would think he is entitled to a refund of the entire amount. But we would probably need to know exactly what the provisions of the CBA say.

[Guest ambeeeant]

Just a bit of clarification.

The coverage that the employee bought under Cobra included prescription drug coverage as well as major medical. When he came back on a part-time status, the coverage which went retroactive to April 1 did not include prescription drug. The employee notified the employer on April 24 that he wanted to terminate the Cobra coverage. The question now is: Does the employer owe the guy a pro-rated amount for the period April 24 to April 30. He has been reimbursed the amount that he paid for May.

Sorry, I thought I had the full story when I posted the question but, as always, the Paul Harvey factor entered in and there was "More To The Story."

There are no negotiated components in the CBA that would address anything with regards to Cobra entitlement. The SPD does address Cobra but does not address anything about method of payment or reimbursment.