Medicare eligible

We have an EE who has recently termed from our health insurance plan because she is going with Medicare. She was actually eligible for Medicare years ago, but she chose to stay on our health insurance and we agreed to it. Did we have to let her stay on our health insurance plan? Could we have told her she is no longer eligible. Do most of you out there ask your staff to go with Medicare once they are eligible? I'm wondering what we would do if she wants to go back on our health insurance at next enrollment period. I know because of her age that increases our premiums.
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