65 on COBRA

Elizabetharess

We have a former employee that has been on COBRA. She turned 65 a few months ago. Are we still obligated to carry her on COBRA?

SMace

You need to look at what your Plan Doc says.

E Wart

I always have to think this through but pretty sure I am correct. If someone has COBRA and are offered "similar" coverage, they are no longer eligible for COBRA. However, if someone is on Medicare or other coverage when they could still elect COBRA (Not sure why they would, but they could.)
So, yes, even though you need to check your plan and with your TPA/Provider, I think their COBRA coverage would end at the time they become eligible for Medicare.
E Wart

AJ SPHR

Just a clarification because I used to think this as well. COBRA beneficiaries are allowed to continue COBRA coverage as long as they pay the premiums, whether they have been offered other coverage or not. You cannot take someone off COBRA if they become eligible for another employer's plan if they decide to continue coverage under COBRA.

Elizabetharess

Very interesting. Makes sense since no one can know who was offered what and when.

NeedCoffee

I'm going to be the dissenting opinion here. Medicare eligibility is not cause for a COBRA terminating event. However, Medicare entitlement is. Just because someone becomes eligible for Medicare does not mean they have reached Medicare entitlement.

For reference, please see US Supreme Ct case Geissal v Moore Medical Corporation, June 8, 1998. If you will send me an e-mail, I will be happy to send you a great file regarding COBRA/Medicare interaction.

Good luck!

[email]shulsey@howdyhonda.com[/email]

Elizabetharess

OK!
In reading the Supreme Ct document and the article you sent me (Thank You!)I interpret my situation to be that the terminated employee became entitled to Medicare after she quit and was on COBRA with the company. "If Medicare entitlement occurs after COBRA is elected, it will act as a COBRA terminating event". I am quoting off of the article you sent. Whew! very interesting.
Thanks
Elizabeth

Elizabetharess

I have a new question on this. After reading and reviewing all the information, the person was sent a notice of termination. She called back stating that she expected a 30 day notice. I told her that in her original COBRA notification documents it is stated that Medicare entitlement is cause to terminate COBRA benefits. She insists that she was not given notice. Not only did the COBRA document state this but the SPD from the health provider also states this. I spoke with the provider and they erred in not tracking her. They usually have a notification tracking for this very thing.
My letter was dated April 5th so it is shy of 30 days.
Does anyone know about Dental and age? Is there a timeline with that?
What do you think is the legal thing to do with this.
Thanks
Elizabeth

E Wart

Thanks "Needs coffee", this is what I was trying to say, but you put it much better.
E Wart

lnelson

You can end COBRA Coverage if:
After the COBRA election, a beneficiary becomes entitled to Medicare benefits. However, if Medicare is obtained prior to COBRA election, COBRA coverage may not be discontinued, even if the other coverage continues after the COBRA election.



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