Cobra and Temporary Lay-offs

[Guest rseymour]

One of my groups has temporary lay-offs up to 3 months. the carreir is willing to cover the eeys. They company continues to pay 75% of the single premium but some eeys do not elect to maintain the insurance as they do not get paid any more. Do they need ot get a COBRA notice??? Is this a qualifying event?

Sometimes the temporary lay-off turns into a permanent at which point they eeys are terminatred and COBRA is offered. How about the ones that did not elect to continue? If they discontinued coverage earlier, woudl this event allow them to pick up COBRA?

[Guest b2kates]

yes, it is a cobra qualifying event. any change in circumstances that changes an employees ability to be covered by the group health plan is a qualifying event; even changing status from full time eligible to part time ineligible.

Get out the notices pronto!

[Kirk Maldonado]

Brett:

The following statement you made is overbroad:

any change in circumstances that changes an employees ability to be covered by the group health plan is a qualifying event

The statute says which events entitle a person to elect COBRA. If the event isn't one of those listed, then the person can't make a COBRA election, even though the person would lose coverage under the plan as a result of that change in status. For example, changing from union to non-union status would not be a qualifying event even if that switch causes the person to lose his or her ability to participate in the plan.