Comments on: Answers to tricky HR questions: OK to have a separate COBRA continuation plan?

By: JT

JT — Thu, 16 Jul 2009 15:59:26 +0000

Jackie,

We have a similar plan and were told by the COBRA “expert” at our insurance company that we can include the pro-rata portion of the deductible in the premium. For example, if the monthly premium payment is $400 and the annual HRA contribution is $3200, the employee would pay $666.67 ($400 + 3200/12). In addition we are allowed by law to collect an additional 2% from COBRA recipients for administrative costs.

By: Ely Merrell

Ely Merrell — Fri, 13 Mar 2009 20:20:20 +0000

We are in the midst of our renewal. Our present carrier has renewed reflecting a 50% increase. YES, 50%. They aledge that this is due to heavy usage by particulary 3 employees. Based on what I happen to think, I believe one possible two of these employees are on COBRA.
In an effort to be competitive, we are courting a different provider. We want to implement two plans, one for management and one for non management. We want to implement an hmo for management and a mini med for non management. Implementing the mini med would help us meet our compliance requirements (which we always struggle with).
Now for my question, if we were able to make this transistion, if the folks that are on COBRA are non managment, can we make an acception and allow them the choice between the two plans? In turn, can we also offer them only the mini med? This seems like a somewhat cruel due to their chronic circumstances but I pose it to you so as to understand the options we – the employer has.

Thank you,

Ely

By: Maureen D,Averso

Maureen D,Averso — Wed, 11 Mar 2009 12:27:22 +0000

Does this only apply to employees that were terminated or does it also apply to employees that have retired but need coverage until Medicare A eligible?

By: Jackie

Jackie — Tue, 10 Mar 2009 12:05:48 +0000

We have an HRA account where the employer pays $3200 towards the deductible and the employee pays $400 for a 2-person plan where the deductible is $4000. We had a layoff and 3 of the laidoff employees who are on the 2-person plan would like to go on cobra. How do we handle billing of the premium to include the $3200 or does the employer still have cover this amount?

By: Pat S

Pat S — Mon, 19 Jan 2009 16:21:43 +0000

For Sue – You offer the same plan options to COBRA particiapnts as to the current employees.

By: Sue D

Sue D — Mon, 20 Oct 2008 23:11:03 +0000

We have decided to go with 2 health plan options this year instead of one. Neither is the plan we had before. We have also gone from a 90%/10% with no deductible to a 80%/20% with a higher copay and deductibles. Does this mean we have to continue to offer the previous plan to those who are already on COBRA? We haven’t changed carrier just the plan options.