Medicare and Cobra

[Guest JD698]

In the case of a self insured multiemployer union health plan, one employer decided to withdraw from the plan and will, at the start of the new month, be covered under a non union plan and notified the union and health fund of this in writing. One day prior to the month's end (1 week after the termination letter was sent), the employer sent a letter to the Fund stating that 2 of its administrative employees (aged 77 and 78) were being terminated as of the end of the month and that they wanted COBRA coverage.

1. Does the Fund have to offer COBRA to these employees?

2. Does Medicare eligibility come into play?

If you need additional information, I'll gladly provide it.

Thanks in advance for any help.

[oriecat]

Note, I am no expert in these matters, but these are my understandings...

Yes, COBRA should be offered. It doesn't matter what new plan they would have been covered under if they continued employment, the fact of the matter is that they were covered under the union plan as of their termination, and therefore that plan must offer them COBRA (if they are otherwise required to offer COBRA to participants).

I don't believe Medicare eligibility would have any effect, unless they are not currently enrolled and later enroll. Just like having other coverage at the time of the qualifying event does not negate your COBRA rights, Medicare is the same way.

[leevena]

JD698...you may want to try this link to help you with some of your questions. Since the notice of termination date is so close to the change in carrier date, there may be some particulars that are unknown to us at this post. Try this link and see if it helps you.

http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html

[Guest sady]

Can you give me some advice? I have an terminated person on COBRA and medicare who has ESRD. Do I have to continue to offer that person COBRA, or can I terminate COBRA coverage since he is eligible for medicare. This person is very young and would not qualify for medicare because of age. Thank you in advance for your replies!