Q.- We have an employee who is out on disability. He won't tell us if he is coming back to work or not. We want to remove him from benefits and offer him COBRA. We pay 10% of the premium and employees pay 90% of the premium. He has not been sending in his premium payments for coverage, and we have no way of recouping his contributions while he is on disability. Is there a problem with taking him off the plan and offering him COBRA?
A.- Maybe. COBRA continuation coverage is offered when there is a COBRA qualifying event that causes a loss of coverage. If the individual on disability is now being terminated from employment, the termination of employment would be a COBRA qualifying event and it would be appropriate to offer him the right to elect COBRA continuation coverage. If you want to offer COBRA coverage just because you cannot collect the 90% premium payment, that is not an appropriate qualifying event under COBRA. There are also FMLA issues to consider.
