COBRA Premium and Smoking/Spousal Surcharges

[Guest mbw]

I realize plans are permitted to charge no more than 102% of the "applicable premium" for any period of continuation coverage. Generally, the applicable premium is the cost to the plan imposed by the insurer for similarly situated beneficiaries who have not had a qualifying event. Is anyone in practice carrying over surcharges such as smokers or spousal surcharges to COBRA premiums? I understand this may be risky given the lack of guidance permitting. Any thoughts?

[jmor99]

COBRA beneficiaries have to be treated the same as full time employees as far as the benefits that are available. Are the full time employees charged extra if they smoke? If so, I don't see why the surcharge couldn't be added to the COBRA premium. Of course, it should be stated up front, in the SPD, as far as how COBRA will be figured.