COBRA & HIPAA
Alice1
28 Posts
It is obvious to everybody that I am brand new in HR so forgive me if my questions sound untrained because right now I am. I will be taking some courses so I plane to more professional as time goes on.
We have a health plan (HMO type)we are under 20 employees right now so we are not restricted by COBRA as I understand it...but once an empoloyee qualifies for the coverage and leaves after a year that is when HIPAA kicks in and the health carrier issues (upon request) a Certifcate of Coverage. This allows the employee to get immediate coverage with the new carrier once she is eligible.
In reading the data on HIPAA there seems to be no minimum employee requirement here as there is for COBRA.
One more thought, since we are only 10 employees how does ADA fit it?
How close am I.
We have a health plan (HMO type)we are under 20 employees right now so we are not restricted by COBRA as I understand it...but once an empoloyee qualifies for the coverage and leaves after a year that is when HIPAA kicks in and the health carrier issues (upon request) a Certifcate of Coverage. This allows the employee to get immediate coverage with the new carrier once she is eligible.
In reading the data on HIPAA there seems to be no minimum employee requirement here as there is for COBRA.
One more thought, since we are only 10 employees how does ADA fit it?
How close am I.
Comments
You will learn a lot just reviewing these message boards. Good luck & don't look back!
While federal COBRA applies to group plans of 20 or more, watch out for state versions of COBRA law. Many states have this with a much smaller threshhold. For ex, in Illinois, there is a right to continue for 9 months for the smaller group plans of one or more..... (I've just oversimplified it horribly, but you see my point.)
HIPAA applies to all group plans, regardless of size. A group can be as little as 2 people. The obligation to furnish a HIPAA certificate is triggered anytime someone leaves you (or just plain old requests one) and had coverage. I am unaware of any requirement to cover them for a year first. Talk to carrier about this. Sometimes the carrier will handle this aspect for you. Of course, you as the employer are on the hook if the carrier screws up.
ADA has a threshold of 15 ees. Again, be careful. Most states also have some sort of disability discrimination statute on point with a smaller threshhold. In addition, if you work in a fairly large urban area, there may well be city or county ordinances that also protect for the same thing but geared to snare the smaller employer.
Lori
Keep asking questions. We are all here to help. Someone answered our questions when we were new to HR and we'll help you! Welcome. It's a great profession!
Margaret Morford
theHRedge
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