Cobra

[peterlee]

What is the name of your state (only U.S. law)? CA

Can some helper advise whether or not the employer has to notify by writing to the terminated employee the COBRA program by law?

 

[Zigner]

What is the name of your state (only U.S. law)? CA

Can some helper advise whether or not the employer has to notify by writing to the terminated employee the COBRA program by law?

Yes, COBRA notification is required by law.

ETA - my post is vague because the question didn't provide detail

 

[peterlee]

Terminated but not notified by COBRA

Thank you for your info.

I was terminated from the 10 years employment Sept. 21, 2007. During which 10 years, the former employer with 20 employees provided the group medical insurance. The termination letter notifys me that my medical insurance expires by the end of Sept. 2007 and no mention of COBRA. The job loss is not my fault. I was interviewed by EDD and approved the UI benefits. So far I don't have any medical insurance and I just came cross the COBRA info on the website. Does the former employer have the liability to me for not providing COBRA ? What I can do for that ? Thank you.

 

[mlane58]

Yes they have to notify. Why were you terminated? it makes a difference to my answer on the rest of your post.

 

[peterlee]

Thank you.

I was the senior buyer and the former employer said at the terminated day that I used the wrong price to purchase an item which was $10 difference and did not listen to my explanation, but it was not my fault, then terminated me with the prepared paper.

 

[mlane58]

I was the senior buyer and the former employer said at the terminated day that I used the wrong price to purchase an item which was $10 difference and did not listen to my explanation, but it was not my fault, then terminated me with the prepared paper.

Ok, then file a complaint with U.S. Department of Labor. There isn't a statute of limitations either.

 

[peterlee]

Thank you.

Thank you for your advice.

 

[cbg]

Actually, there is a statute of limitations, but you're still within it so it's not a problem.

Just one question; how many employees did your employer have?

 

[peterlee]

It has 20 employees. Today I found a letter from the medical insurance by the end of Sept. 2007 that it provides the continuation of the insurance at the monthly premium for medical coverage only at $562.00, not including dental and vision. I could not afford it, so I did not buy. Will you please advise whether or not the former employer still has liability for my medical insurance by not sending me the COBRA info at the terminated day?

 

[justalayman]

I know this thread is several months old but I see you are still around and I figured since you did not receive the answer at the time, maybe it will still be useful now.


they never have liability to provide you with medical insurance. Cobra is a legally mandated program that allows you to continue your insurance, at your own expense.

and the letter you speak of is your notification.

You refused to buy. End of story.

Summary of Federal Law

29 U.S.C. § 1161 et seq., 26 USC § 4980B; 42 U.S.C. § 300-bb-1, et seq.

The Law: This law requires covered employers (20 or more employees) offering group health plans to provide employees and certain family members the opportunity to continue health coverage under the group health plan in a number of instances when coverage would otherwise have lapsed. The employee or qualified beneficiary may be charged 102% of the applicable premium for this benefit.

Notices Required: There are several different notice obligations under the law. First, a health plan administrator has an obligation under the law to provide a general notice of COBRA rights to an employee and his/her spouse when health coverage begins. Second, the employer of a covered employee must notify the plan administrator within 30 days when a qualifying event occurs. A qualifying event includes:

an employee's termination of employment;
reduction of hours in employment;
death;
enrollment in Medicare; or
the employer's bankruptcy filing.


Third, the qualified beneficiary (employee or his/her spouse or dependent) must provide notice (within 60 days) to the plan administrator of a divorce, legal separation, child losing dependent status, second qualifying event, or Social Security disability determination. Fourth, the plan administrator in turn must notify (within 14 days) the qualified beneficiary (notice to spouse covers dependents residing with that spouse) of his/her COBRA rights. See 29 CFR § 1166 for further permutations of the rules, for example, how determination of disability affects the timing under the third notice requirement.

Qualified beneficiaries have 60 days to elect continuation coverage. The maximum period that this continued coverage must be provided is generally 18 months, but in some cases it is 36 months. Under a new law (The Trade Act of 2002) there will be a second 60 day election period for individuals who become eligible for trade adjustment assistance.See the proposed regulations linked below.

The employer must keep detailed records of COBRA notifications, including the dates sent, and detailed records of COBRA rejections or acceptance. Failure to comply with the law subjects the employer to excise taxes, in addition to damages under ERISA, as well as possible attorney's fees and the liability for any of the beneficiary's medical expenses that were due to the gap in coverage.

 

[cbg]

JAL is correct. That letter was your COBRA notification. Your employer has no liability for the fact that you did not purchase the plan.

COBRA IS a continuation of the existing insurance. They sent you everything they were required to.