what to charge for COBRA

K_Lynch

How do you quote prices for your COBRA coverage? If employee had family coverage, and gets divorced, do you charge ex spouse the ammount of a single employee, or the diff between family coverage and ee/child +2%.
Same question for child turning 19. Single policy cost, or only the diff?
thanks,
Kim

Hunter1

We treat them both as single coverage. That's what they have.

LindaS

The COBRA cost is typically 102% of the monthly premium. When you complete the election notice, with the costs, you list the costs for ALL the types of coverage the qualified beneficiary is eligible for. In your example, you would list the total cost for family, EE+1 and single coverage - not the difference between them.

K_Lynch

So... if during a divorce situation the spouse and childred are dropped, I offer COBRA to each person as an individual, then if spouse and 3 kids elect COBRA, its not at the cost of family coverage +2%, but at 4 single policies +2%? Just wanted to make sure.
Kim

LindaS

No, in your example you would offer the ex-spouse and the three kids the option of choosing either the family coverage or single coverage (unless you also have ee+1). NOT four single plans. A qualified beneficiary is to be offered the SAME options as any other participant. If, however, the employee carried only single coverage and wanted to elect family coverage under COBRA, he/she would not be able to do that until your open enrollment period.

K_Lynch

ok. I understand it now, thanks for the help.