Health Care and late divorce notification

[French]

What do other employers do when an employee does not notify the employer of his/her divorce until 6 months after the effective date?

I understand we are not obligated to offer COBRA to the ex-spouse. Historically we have used the most recent date of notification from the employee as the date we terminate coverage for the ex-spouse and change the premium payment of the employee. We are however considering making the termination date retroactive - either by 60 days (since we know the plans can handle that administratively) or the effective date whichever is the earliest. Anyone see a problem that we have not thought of?

Thanks.

[EPCRSGuru]

What do other employers do when an employee does not notify the employer of his/her divorce until 6 months after the effective date?

I understand we are not obligated to offer COBRA to the ex-spouse. Historically we have used the most recent date of notification from the employee as the date we terminate coverage for the ex-spouse and change the premium payment of the employee. We are however considering making the termination date retroactive - either by 60 days (since we know the plans can handle that administratively) or the effective date whichever is the earliest. Anyone see a problem that we have not thought of?

Thanks.

Is it true that you are not obligated to offer COBRA to the ex-spouse?

[Chaz]

Employees generally must provide notice of a divorce within 60 days to be eligible for COBRA coverage so no COBRA need be offered as long as the deadline requirements are adequately spelled out in the initial COBRA notice.

The employer must send a notice of unavailability.

Even under health care reform you CAN terminate the coverage retroactively but be aware that such an action may have an impact on an innocent party (i.e., the ex-spouse).

[French]

Does anyone ever retro a date to the actual divorce date even if it is after the 60 day window?

What we have noticed is that some employees play by the rules (and notify us within the 60 days) while others "forget" and get to continue coverage for the ineligible dependent (ex-spouse) for way too long. We certainly don't want to punish the ex-spouse but with our health care costs continuing to rise, we need to ensure that only eligible dependents remain covered.