COBRA - Relocation out of HMO area

[Guest lmrice]

I have a question that I guess is based on technicalities.

The new COBRA regs state that a "qualified beneficiary" must be allowed to change plans if they move out of a HMO area into an area that doesn't service HMO and that the employer has another plan (i.e. PPO, indemnity). Well, what about a former employee who is not yet a "QB." Said employee termed mid January, has HMO benefits thru 1/31. During Jan., she moves to FL, out of Kaiser California HMO area. She would be effective for COBRA 2/1 and wants to enroll in Aetna HMO which the employer offers. Employer (who is a COBRA admin. company) says no, you elected Kaiser during open enrollment and can't change. My question is: is this correct because she wasn't a QB when she moved? If so, could she just elect HMO coverage for the month of Feb., even though it's useless to her, and then change to Aetna in March? She's pregnant, so that's the issue.

Any help/ideas/suggestions are much appreciated!