defined group for COBRA

We are implementing a group health plan for a defined group of employees that will number less than 20.

The previous group health plan was terminated and a couple of former employees had COBRA coverage.

Does their COBRA continue under this new defined group plan?

I think it would since our overall total number of employees is greater than 20.

Comments

  • 2 Comments sorted by Votes Date Added
  • Well, mam, I think I have your answer. I relied once again on our able insurance broker for her assistance and here's her read on it.

    Subj: RE: Forum
    Date: 10/31/2002 2:35:44 PM Central Standard Time
    From: [email]kgreene@rossandyerger.com[/email] (Kim Greene)
    To: [email]Trilogydd@aol.com[/email] ('Trilogydd@aol.com')
    Regardless of the # of participating employees in the group health plan, the new plan will have to offer COBRA (to existing COBRA continuees and to future continuees). COBRA applies to employers with 20 or more employees, not 20 or more participants.

  • I believe your obligation to offer these people continued coverage is set by your number of ee's, vs. number of participants. Yup.... I think ya gotta do it!
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