Q.- An employee terminated employment and is receiving a COBRA election. She was on our buy-up plan but says she wants to have our standard plan under COBRA. Do we have to offer her continuation coverage in the standard plan?
A.- No. The continuant is offered the opportunity to continue coverage under the plan in which she was enrolled as an active employee. So long as the employee can utilize the coverage in the buy-up plan (for example, she did not move out of the coverage area), you only have to offer her the right to continue coverage in the plan in which she was enrolled. She may have to be offered the opportunity to switch coverage at the open enrollment period offered to similarly situated active employees.
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).
