COBRA ELIGIBILITY

Down_the_Middle

We're offering designated, hard-to-recruit positions the opportunity to choose full-time w/o benefits and thereby paying the individual more money in exchange for not being eligible for the customary health and welfare benefits (e.g. health/dental/vison, life, LTD, etc...) Is the employee who chooses FT w/o benefits also entitled to receive COBRA notification? I'm inclined to say NO since the loss of benefits is a voluntary employee election and there is no reduction in hours (which causes loss of benefits). What do you COBRA experts think???

Down_the_Middle

Any COBRA guru's out there who wanna take a shot at this????

Scott Ruth

I believe this to be correct, since there is no termination of employment or reduction in hours, there has been no qualifying event. Therefore no COBRA rights will attach. As a fiduciary of the health plan, however, you probably have a duty to explain that COBRA will not be available before they make their decision.