Disability - Multiple Events

[Guest COBRA E]

Heres the story....An Ex-employees is on COBRA and the wife was declared Disabled. So they get the 29 months. The wife dies. What happens to the Ex-employees COBRA. In addition, let me know what happens if she died before or after the 18 months. Thanks in advance

[Guest chloe]

Unfortunately, the ex-employee's COBRA coverage ends. If the death occurred before the end of the initial 18 month period, then the former employee finishes the 18 months of COBRA, but doesn't get the extension. If the death occurs after the initial 18 month period (i.e., during the disability extension), then the COBRA will end upon the death of the disabled individual. The disability extension is only available as long as the individual continues to be disabled. And the family's coverage during the disability extension is connected to the disabled individual. And since the deceased individual was not the employee, there is no secondary event to extend the COBRA to 36 months. Unfortunately, this former employee is in a tough situation. Of course, nothing (other than the carrier) would prohibit the employer from providing a better benefit than required by COBRA, but they would have to provide equally to all similarly situated individuals.

[Guest AMP]

I agree with chloe that there is no 36-month event here for the ex-employee.

But if the spouse's death occurred after the end of the initial 18-month period, there's an argument that the ex-employee's coverage should extend until the end of the month following the month in which the disabled spouse died. Code Section 4980B(f)(2)(B)(v) provides that COBRA coverage under the disability extension ends as of the first day of the month that begins more than 30 days after the date the Social Security Administration determines the individual is no longer disabled. One would think the SSA would determine that the spouse ceased to be disabled when she died. So, the COBRA should end at the end of the month following the month in which the spouse ceased to be disabled (died).

[Guest chloe]

Yes, absolutely. I agree that the coverage would be to the end of the month following. Should have been clearer.