COBRA

Rockie

Our COBRA is handled by a third party administrator, but here is an issue I really don't know know the answer to:

An employee is getting a divorce and wants to take her husband off her insurance policy. Supposedly in SC, a legal separation is not a qualifying event. The spouse has a very bad health condition (dialysis). I contend that it would not be a good idea for this individual to take the spouse off her medical insurance prior to the divorce I feel she may be setting herself up for some type of liability in case the judge rules that she has to keep coverage on her spouse. What if the ex-spouse doesn't meet the time limit for COBRA notification and he is deemed uninsurable?

I've always been taught that this would be a qualifying event and the spouse would be entitled to COBRA continuation even though the divorce had not gone through.

I'd like some feedback from some COBRA "gurus" out there!

Thanks!

Terry

I am in New Jersey and the answer to this for me is not found in COBRA but in the State laws that cover separation and divorce. If the spouse has no other coverage, my understanding here (NJ) is that it is illegal to remove the spouse prior to the legal proceding of either separation or divorce. I used to work for an insurance broker and client had allowed an employee to remove his wife (not realizing there could be any restrictions). The wife took the issue to court and the ee not only had to reinstate his wife but also pay 5 months of back premium to his employer (of the normal employee contribution level). Trust me when I say this was a mess, all her medical claims that had been denied for lack of coverage needed to be reprocessed and the employee complained to no end about the paying back premium.

HR in Okla

Are you covered by a Section 125 plan? That also impacts when someone can be dropped from insurance coverage. We had a similar situation, and I was advised by our insurance company NOT to drop the spouse until the DIVORCE proceedings are complete and you have a court decree. The qualifying event, in my understanding, is when the divorce decree is issued.

AnaFL

I'm in Florida and we were advised to do the same, i.e. never drop the spouse until the divorce is final and you have proof of that in the file. Then they can be offered COBRA in a timely manner, and you've done your part in full.