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ACA Considerations for Severance Agreements
Liebert Cassidy Whitmore Link to more items from this source
Nov. 3, 2014
"It is not uncommon for employers to offer to pay for continuing COBRA coverage for a former employee as part of a severance agreement.... Let's say that an employee loses his job, and his or her employer agrees to pay for COBRA for three months. If the end date of this employer contribution does not fall during Covered California's open enrollment period, the employee will be forced to maintain COBRA coverage until the next open enrollment period in order to avoid any gaps in coverage."

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