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COBRA: Employee died / 6 Children / 4 Different Moms

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An employee died, had six children on the plan. Employee was divorced. Four different moms. We are not aware of any court orders. We provide subsidized COBRA for 24 months. Questions: Who do we offer COBRA to and and at what rate - do we offer at the subsidized employee + child(ren) rate (and net out the employee only rate) to each mom?

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You would need to offer it to all spouses/dependents (qualified beneficiaries) currently on the plan.

I suggest reading through IRS Rev Ruling 96-8 Here is just an excerpt, but there are also examples:   

 "The applicable premium is defined in § 4980B(f)(4)(A) of the Code, with respect to any period of continuation coverage of qualified beneficiaries, as the cost to the plan for that period of the coverage for similarly situated beneficiaries with respect to whom a qualifying event has not occurred (without regard to whether the cost is paid by the employer or the employee). Under § 4980B(f)(4)(C), the applicable premium is required to be determined for a period of 12 months, and the determination must be made before the beginning of that period.....Under § 4980B(f)(5)(B) of the Code, if there is a choice among types of coverage under the plan, each qualified beneficiary is entitled to make a separate election among the types of coverage. H.R. Conf. Rep. No. 841, 99th Cong., 2d Sess. II-859 (1986) clarifies that each qualified beneficiary is entitled to a separate election of continuation coverage, and that a spouse or dependent child can elect continuation coverage even when the employee does not."

It is my understanding that you would need to use the current single rate (only one child) or  the multi-rates (more than one child with the same mom)



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