Question of the Week

Posted by BAS - 13 August, 2020

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Q.- An employee who was terminated in April missed his 60-day COBRA election period. He wants to elect coverage now. Do we have to allow him to enroll in our plan under COBRA?

A.- Yes. In April the government issued a rule extending the timeframe for electing COBRA coverage due to the COVID-19 pandemic. The new rule establishes a new time convention beginning with the start of the National Emergency (March 1, 2020) and ending 60 days after the end of the National Emergency (date yet to be determined). This period is called the “Outbreak Period.”  Employee benefit plans subject to ERISA and/or the Internal Revenue Code must disregard notice and payment deadlines occurring during the Outbreak Period. A plan subject to COBRA will have to extend the time for electing continuation coverage if the due date would otherwise fall during the Outbreak Period.

Topics: COBRA, HR & Benefit Plans, HR & Benefits News


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