Keeping employees on health plan

[Benefits 101]

So an employer wants to create their health plan so that employees remain on the health insurance like so:

Employee is terminated at the end of the month following 31 days from the date of termination.

So if an employee is terminated on October 3, they are removed from the insurance on November 30.

They do not have a Plan Document. I am going to prepare one for them. However, this request seems odd, and possibly at odds with the insurance company's eligibility rules. Any comments, insights?

[lvena]

Never seen anything like this before, not to say it can't be done though. I would ask the carrier, but my guess is the answer would be no.

[Chaz]

This is probably workable if the employer ties it in with COBRA or mini-COBRA, as applicable.

[GMK]

Looks like the employer is trying to be nice by delaying the onset of COBRA by a month.

As Ivena said, first of all, check with the insurance carrier.

I'd also check how the cafeteria plan (if there is one) factors in, if at all.