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Group Healthplan continuance in retirement

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Dinah

Junior Member
What is the name of your state?What is the name of your state? Arizona. I have recently stepped down from my employment of over 19 years. I was asked to do so by the current CEO who called it an “amiable separation.” He felt it was “time.” I did not fight him; it did not seem negotiable anyway. As part of a compensation package, he has offered to keep me on the company healthcare group plan. Is this legal? Can he create an eligible group for “retirees” of say, over 15 years with the company or some such criteria? If he is consistent with others who may fall under this category, would this validate his keeping me on the plan? CAN AN EMPLOYER DEFINE ELEGIBILITY IN THIS WAY? I am also a shareholder which might qualify me for continuation, but he has offered and prefers, to buy me out. :confused:
 


Beth3

Senior Member
As part of a compensation package, he has offered to keep me on the company healthcare group plan. Is this legal? Yes.

Can he create an eligible group for “retirees” of say, over 15 years with the company or some such criteria? If the company wishes to, yes.

If he is consistent with others who may fall under this category, would this validate his keeping me on the plan? If the company wants to go that route, they man.

CAN AN EMPLOYER DEFINE ELEGIBILITY IN THIS WAY? Yes, but I think you're quite likely barking up the wrong tree. My take on your situation is that the company is offering YOU some sort of salary continuation arrangment in exchange for your retiring. As part of the salary continuation they're offering, they also wish to extend continuing health insurance. If the company wishes to offer this to YOU and only to you, they may. While you're on this salary continuation plan, I expect the employer will continue to consider you an "active employee" for purposes of benefit plan participation. The only thing you need concern yourself with is how long your employer is offering continuation in their health insurance and what your options are when it ceases, whether you can then take COBRA, will be eligible for Medicare and will need to purchase Medicare supplemental insurance on the private insurance market, etc.

Your employer does not need to offer formal retiree health insurance benefits in order to provide continuation to you as part of what appears to be a severance arrangement.
 

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