COBRA after other coverage?

MrCreosote

Our employee was terminated 40 days ago and quickly found other work. She received the COBRA information packet from us but did not elect it. Not yet anyway. In her new job she had medical coverage, effective from first day, but she left that job last week. I don't know the circumstances of her departure, but I don't think it was gross misconduct.

Is she still eligible to elect our COBRA coverage, even though she had other coverage since she left us? Can she choose between the better of the two plans or is the most recent one her only option?

Down_the_Middle

Yes, she's still eligible for COBRA coverage through your group plan. Remember, COBRA requires you to offer the same level of coverage she had at the time of the qualifying event and for you to substitute the other employers coverage would expose you to violating the COBRA offering. I suggest that you lef the employee decide within the election period you offered and see what she chooses.

NaeNae55

She can elect coverage until she becomes covered under another group health plan. A reference book obtained at a COBRA ALERT seminar says the terminated employee may have her COBRA coverage terminated if she becomes "covered under another group health plan that does not contain any exclusion or limitation with respect to any pre-existing condition of the beneficiary other than an exclusion or limitation which does not apply to, or has been satisfied under, HIPAA..." So, assuming her new group health plan met the requirements, she would be eligible for COBRA with your company for however many days she was unemployed or without insurance (depending upon when your plan terminates coverage..that is, end of month or last day worked). Once she became covered under their plan she is no longer eligible for COBRA coverage through you so it looks as if your risk here is extremely small. The new employer has to offer COBRA coverage for time periods beginning after she lost coverage with them. Clear as mud?

JeannieS

I agree with you. Once the former employee was covered under another health plan, it is the new company that must offer her COBRA now.