Need clarification on eligibility for Cobra

[Guest DBPension]

Need your help ........

Assume the employer has a roughly 50% subsidized (but frozen $ subsidy) retiree health plan which can be taken in lieu of Cobra, but that the retiring employee does NOT (per the Retiree health Plan Documents) have the option to FIRST take Cobra and THEN switch to the subsidized Retiree Health plan. Also assume that the retiree decides to go with the Retiree health plan (because he needs health coverage to age 65 .... longer than can be provided via Cobra). Then suppose that (say) 6 months after he retires (having entered the Retiree health plan) that the employer unilaterally ENDS the RETIREE health plan (but NOT the health care plan for those still employed).

Must the employer offer the retiree and his dependents Cobra at that time ..... keeping in mind that he has only had 6 months of post-retirement health coverage so far, far shorter than that he could have taken under Cobra?

Specifically, does the ENDING of a "retiree health plan" trigger eligibility for Cobra ?

Any case law or regulatory decisions applicable ?

Thank you !

[Guest Ira Hayes]

Russ Weinheimer, the author of the final §54.4980B Regs on COBRA says it depends. Namely, if the period of Retiree Health Plan Coverage at termination of retiree health plan exceeds 18 (29) (36), whichever applies, then COBRA does not have to be offered by the group health plan for active employees. Otherwise, it does.

In your example, COBRA would have to be offered by the group health plan providing active employee coverage for 12 (23) (30), whichever applies (maximum less 6).

Need your help ........

Assume the employer has a roughly 50% subsidized (but frozen $ subsidy) retiree health plan which can be taken in lieu of Cobra, but that the retiring employee does NOT (per the Retiree health Plan Documents) have the option to FIRST take Cobra and THEN switch to the subsidized Retiree Health plan. Also assume that the retiree decides to go with the Retiree health plan (because he needs health coverage to age 65 .... longer than can be provided via Cobra). Then suppose that (say) 6 months after he retires (having entered the Retiree health plan) that the employer unilaterally ENDS the RETIREE health plan (but NOT the health care plan for those still employed).

Must the employer offer the retiree and his dependents Cobra at that time ..... keeping in mind that he has only had 6 months of post-retirement health coverage so far, far shorter than that he could have taken under Cobra?

Specifically, does the ENDING of a "retiree health plan" trigger eligibility for Cobra ?

Any case law or regulatory decisions applicable ?

Thank you !

[Guest DBPension]

Ira, Thank you ..... very helpful.