Active Duty vs COBRA

LarryC

I have a situation here that I am getting conflicting input from benefit specialists, attorneys, and my broker. I have an employee who will be going into active duty ON Oct.1st which, coincidentally, is the day he becomes eligible for benefits. Do I sign him up for benefits and then offer COBRA? Or do I sign him up upon his return with no waiting period? I had one benefit specialist tell me that he would have to go through the waiting period again upon his return. I don't think so, after reading the USERRA regs. If his effective date was Sept. 30th or Oct.2nd I wouldn't have this problem. What say y'all?

LivindonSouth

I say if he is not actively employed on the date of his eligibility, he waives the opportunity to participate. If his eligibility date were the day prior to his activation, he would be covered. I don't get your reasoning about October 2.

LarryC

On Oct. 2nd he would be offered COBRA after signing up on Oct.1st...if he were here.

National Guard

I'm not sure COBRA applies at all. Are you using the right term? He is eligible for benefits on Oct 1, the same day he is deployed. You aren't terming his benefits (which is when COBRA would apply) You do have a choice of letting the employee continue his health benefits by making arrangements for him to pay by check, thereby no break in coverage. USERRA allows that if the employee chooses not to continue making those payments then his health benefits resume on his return and is not considered a break in health coverage. You are correct there would be no waiting period. But I don't see what the dilemma is?

LarryC

What I'm leaning toward doing is this: None of our insurances cover individuals when they enter active duty. So he has told me he really doesn't want to pay for insurances if they won't cover him. I agree. I will let him fill out the enrollment forms on the day he returns and that will be the effective date of coverage. That would seem to be in the best interests of all concerned, especially the employee, which is my intent.

POPEYE

If there is no spouse or dependent coverage to consider, I agree with your plan of action. Your
EE can probably get governmental coverage a whole lot cheaper. And....find you a new Benefits Specialist!!!!!!! No Waiting Period upon return!

TN HR

Here's what I would do. Draft a very brief memorandum of understanding describing your course of action. Have the employee sign it. Upon his return, offer him enrollment immediately, no waiting period. Fire the benefits specialist.

LarryC

I don't have any Benefit Specialists to fire. These are the benefits people (lawyers) working for the insurance companies that we deal with.