life style change?

mmurnahan

If an employee terminates employment and is offered COBRA, is this considered a life style change for the employee to change health plans?

Pearce

COBRA is offered based on the coverage the participant has at the time of the COBRA qualifying event. If there are three options, and the employee is enrolled in Option 1 at termination of employment the COBRA offer would be to continue Option 1. A change from one option to another would be available at open enrollment.

HRQ

I was told by my TPA for COBRA that COBRA IS a qualifying event. An individual was enrolled in family coverage as an employee and TPA allowed her to enroll in single under COBRA.

Prior to consulting with my TPA, I would have told the employee they couldn't change tiers when enrolling in COBRA either.

Curious to see what everyone else has to say...

LindaS

My understanding of COBRA is the same as Pearce's...

If an employee is carrying a certain type of coverage (i.e., single)they would only be eligible for that type of COBRA, at least initially. Changes in coverage under COBRA could only be made as allowed under your SPD. For example, if an employee gets married and wants to add their spouse to the plan and your plan allows for this at any time during the year, the COBRA participant would then be allowed to add their spouse. If the plan only allows for this to happen at an open enrollment period, they would have to wait until that time.

Pearce

[font size="1" color="#FF0000"]LAST EDITED ON 07-03-03 AT 11:24AM (CST)[/font][p]HRQ,
You are correct that each Qualified Beneficiary has the ability to make a separate election, but that election is for coverage under the Option they are already enrolled in. I understood the original question to be related to a change not from family coverage to individual coverage but a change from one benefit type (such as $200 Deductible Major Medical) to another benefit type (possibly HMO).

mmurnahan

Thanks to everyone. You are correct. The question related to a person wanting to switch "plans" not level of coverage.

I appreciate the feedback. Thanks.