Q.- We have an employee who is enrolled in our HMO. When she terminates employment, she is moving out of state. We also offer a PPO plan which will be more useful to her. Should we offer her the PPO plan for her COBRA election or stick with the HMO?
A.- You should offer her the opportunity to enroll in the PPO plan under COBRA since the HMO plan will not service her health needs when she relocates. If you didn’t have the PPO coverage, you would not have to go out and get other coverage that is useful for her, but since you have the broader-based coverage, she would be entitled to elect it under COBRA.