COBRA Question

[Guest jc1457]

I have a question on COBRA benefits. We have a client who is self-insured. They provide the following types of health insurance options:

• 
  

Individual

• 
  

Family

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2-person

They would like to offer COBRA as either an individual or a family rate. Is this allowable? I believe you must allow a participant to elect the same coverage they could elect before the qualifying event - and so this option is not possible for them. They believe that they are covering all beneficiaries by offering family coverage.

Thanks so much.

[leevena]

COBRA requires that the employee not be charged more for COBRA coverage than the premium equivalent plus 2% admin fee. Unless the family and 2-person costs are the same, the employer cannot do this. The 2-person category would be paying more.

[Guest jc1457]

COBRA requires that the employee not be charged more for COBRA coverage than the premium equivalent plus 2% admin fee. Unless the family and 2-person costs are the same, the employer cannot do this. The 2-person category would be paying more.

Thank you!