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COBRA rate increase

carolatheycarolathey 8 Posts
in Benefits & Leave Vote Up0Vote Down
My company will be switching health insurance carriers effective 3/1/03. Also, our health insurance premiums are increasing. We have several people on COBRA. I assume that their rates will also increase. Or do those folks stay with the previous insurer at the rate in effect when they elected COBRA? I can't seem to find any info anywhere on how to handle this. Help or references to other sources of info would be much appreciated.
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Comments

  • 2 Comments sorted by Votes Date Added
  • Margaret MorfordMargaret Morford 1,143 Posts
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    Their rate goes up the same as everyone else. Just send them a letter telling them about the rate change and when it's effective. They pay the new rate plus the administrative per cent.

    Margaret Morford
    theHRedge
    615-371-8200
    [email]mmorford@mleesmith.com[/email]
    [url]http://www.thehredge.net[/url]
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  • E WartE Wart 719 Posts
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    Your COBRA employees are part of this Plan and go with whomever is handling the Plan (new carrier) at the new rate plus administration fee.
    If you are paying your carrier to handle COBRA, they should be able to tell you the rates. Obviously you or the former carrier need to let them know which of these employees are on COBRA. YOu may have to even have them complete a new enrollment form, if all employees are having to do this. Talk with your carrier or TPA about this.
    If you handle COBRA, you may want to ask them (new carrier and/or broker) for help to make sure you don't forget anything.

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