Shark Posted October 16, 2019 Share Posted October 16, 2019 I am leaving my company before the end of the month. My coverage will end the day I leave the company, but I am being charge my full premiums for the month. Is this legal? Link to comment Share on other sites More sharing options...
leevena Posted October 16, 2019 Share Posted October 16, 2019 Yes Link to comment Share on other sites More sharing options...
Luke Bailey Posted October 17, 2019 Share Posted October 17, 2019 leevena, can you provide a cite? Is your argument simply that it is legal if that is what the plan document provides? Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
leevena Posted October 17, 2019 Share Posted October 17, 2019 Luke, I do not believe there is any legal law/reg to point at for this. I have been in the employee benefit industry since ‘82 and have seen it in both ways. Looking at it now I should have added more to the answer. I do not believe plan documents address this issue, at least not that I ever remember. My response earlier was to state it is can occur. As for this persons situation, I do not have sufficient information to comment. By use of example. Employee is hired 4/1, with a waiting period of 0 days, 26 pay periods, $50 per pay period employee contribution. The employer will not have a full employee contribution for the month of April, but makes it up in last month. Link to comment Share on other sites More sharing options...
Luke Bailey Posted October 17, 2019 Share Posted October 17, 2019 leevena, in my world employees are typically paying a very large share of their premiums, and very often coverage starts first day of month. Seems like in some situations the outcome could be questionable. ERISA says so much about retirement plans, so little about health, but preempts so much. Guess it wasn't such an issue back in 1974. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
leevena Posted October 17, 2019 Share Posted October 17, 2019 Luke you are correct. For health ERISA address communication and discrimination for the most part. At the state levels, I cannot think of any state that regulates this issue either. Link to comment Share on other sites More sharing options...
GBurns Posted October 27, 2019 Share Posted October 27, 2019 The problem is that: 1. Insurance premiums are quoted as a monthly rate. 2. The section 125 election is on a monthly basis. 3. The payroll is not set up to meet any whim and fancy situation that might occur. I doubt that your insurance coverage is really up on the date that you leave the job. Is this information coming from the Insurer or it it from your Benefits Dept? I would ask the Insurance company for verification. George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction) Link to comment Share on other sites More sharing options...
Luke Bailey Posted October 28, 2019 Share Posted October 28, 2019 On 10/26/2019 at 7:32 PM, GBurns said: doubt that your insurance coverage is really up on the date that you leave the job. Is this information coming from the Insurer or it it from your Benefits Dept? I would ask the Insurance company for verification. Shark, the above from GBurns is really good advice. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
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