COBRA

D E Barry

I have an employee on STD and in 8wks to be on LTD and not returning to our office. Do they qualify for COBRA while on STD/LTD or do we ned to continue to pay Health Ins for them? Would this be a "reduction in hours"? (to zero??) also-- Do we need to keep her job open?(We do not qualify for FMLA)

Terry

Do you have a written STD policy? What does it say about continuing benefits? If you don't have a written policy, what has been your practice in the past (how long have you continued benefits)? Also, which state are you in?

D E Barry

In reply to your questions: We have no policy that addresses this issue, nor do we have any experience with this. The last few employees to go out on disability were STD only and returned to work before LTD. The one that was on LTD did not participate in our Health Plan so we did not have this issue.

Scott Ruth

When health coverage ends should be addressed in your health plan document. At a minimum, this is when COBRA coverage must start. The qualifying event is the reduction of hours that causes coverage to end. In some cases, if notice is properly given, you can count regular coverage provided after the reduction in hours toward the total amount of COBRA required coverage. I recommend looking at you plan document and seeking specific advice if it your direction is not clear after that.