COBRA Administrator denies coverage!
cebudragonlady
405 Posts
1. EE fired 12-6-2002 .
2. EE under health coverage with Plan A during December 2002.
3. Company gave former EE notice of intent to switch coverage to Plan B
effective 01-01-2003, by letter sent 12-9-2002
4. Company sent letter to former EE, notifying of COBRA rights with Plan B,
by letter sent 12-9-2002
5. Company completed COBRA forms and sent to outside COBRA administrator in
mid-January 2003. Then today....
6. COBRA administrator notified former EE that a) there could be no coverage
under Plan A because Company no longer had that Plan, b) that there could be
no coverage under Plan B because former EE was never enrolled under Plan B
while working with the Company.
What should I do???
Chari
2. EE under health coverage with Plan A during December 2002.
3. Company gave former EE notice of intent to switch coverage to Plan B
effective 01-01-2003, by letter sent 12-9-2002
4. Company sent letter to former EE, notifying of COBRA rights with Plan B,
by letter sent 12-9-2002
5. Company completed COBRA forms and sent to outside COBRA administrator in
mid-January 2003. Then today....
6. COBRA administrator notified former EE that a) there could be no coverage
under Plan A because Company no longer had that Plan, b) that there could be
no coverage under Plan B because former EE was never enrolled under Plan B
while working with the Company.
What should I do???
Chari
Comments
I agree totally with BSA. The employee could choose coverage under A and if A is superceded by B, then employee would be covered by B.
Get someone higher up in your Cobra Administrator to try and see the logic of this.
You will save your company beaucoup money now instead of fighting a long, drawn out lawsuit.