Q.- An employee is terminating employment, and we know he is moving far away. Do we have to offer him COBRA if we know he will be outside our plan’s coverage area?
A.- Yes. If he has a COBRA qualifying event (termination of employment is such an event) and if he was covered under your plan on the day before the termination, you must give him the right to continue coverage under COBRA even if he is moving outside the plan’s coverage area. If you have a plan that would provide coverage in his new location, you must offer that plan instead of the one in which he was covered.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).