COBRA Questions
Carey
143 Posts
This year we have started a new procedure requiring employees who want to continue to contribute to their FSA and submit claims to do so through COBRA. The question is whether the termination counts as a qualifying event that would allow the employee to change their contribution. (If they were contributing $200/month could they change it to $1 to insure their ability to submit claims against the money already contributed for the remainder of the calendar year?)
Second COBRA question: We have always allowed employees to switch insurance options (within a carrier or to another carrier) when they elected COBRA. Now, our Benefits dept is saying they can't switch, but can only elect COBRA for the insurance plan they chose at open enrollment. Is there any part of the COBRA regs that require us to allow them to switch? We've had many employees want to switch to Kaiser when they take COBRA because it's cheaper than the others.
We are outsourcing all of our Benefits admin and are going through a period of upheaval!!
Second COBRA question: We have always allowed employees to switch insurance options (within a carrier or to another carrier) when they elected COBRA. Now, our Benefits dept is saying they can't switch, but can only elect COBRA for the insurance plan they chose at open enrollment. Is there any part of the COBRA regs that require us to allow them to switch? We've had many employees want to switch to Kaiser when they take COBRA because it's cheaper than the others.
We are outsourcing all of our Benefits admin and are going through a period of upheaval!!
Comments
I'm interested in hearing what happens on the FSA situation - we just started a FSA plan this year and I was not aware that employees could choose COBRA for that - I was told it just ended when ee terminated.