Medicare and COBRA
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I have an employee whose position was eliminated. This employee is 69 years of age. We offered him a severance package that included a lump sum financial package and continuation of health insurance through 10/31/03 (end of severance) on a reduced COBRA rate. Meaning he would continue to pay his portion of the health insurance and we would pay the remainder. Our health insurance is administered through a third party administrator. They are telling me that he is not eligible for COBRA because he is entitled to Medicare. The employee has never signed up for Medicare, however he did receive a card from Medicare that informed he was entitle to Medicare partB.
Can anyone shed some light on this. (My corporate office decided theconditions of the severance agreement)
Can anyone shed some light on this. (My corporate office decided theconditions of the severance agreement)
Comments
In otherwords, they will still be covered, atleast by a supplemental plan while employed.
Good Luck!