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Nov29

Healthcare Coverage

If a non-exempt employee works one day of the month then quits does their health care coverage continue until the end of the month?

Whether healthcare coverage terminates on the employee’s last day of work or on the last day of the month completely depends on the terms set forth in the employer’s insurance policy. It’s common practice to keep employees’ benefits active until the end of the month.

Employers are encouraged to clearly state in the employee handbook the time period for which benefits will remain active once an employee separates from the company.

It’s also important for employers to be aware of their responsibility to notify covered employees of their eligibility for continued coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA). Qualified beneficiaries must receive a COBRA election notice within 14 days after notice of a qualifying event (i.e. separation of employment).

The election notice should include:
• The name of the plan and the name, address, and telephone number of the plan’s COBRA administrator;
• Identification of the qualifying event;
• Identification of the qualified beneficiaries (by name or by status);
• An explanation of the qualified beneficiaries’ right to elect continuation coverage;
• The date coverage will terminate (or has terminated) if continuation coverage is not elected;
• How to elect continuation coverage;
• What will happen if continuation coverage isn’t elected or is waived;
• What continuation coverage is available, for how long, and (if it is for less than 36 months), how it can be extended for disability or second qualifying events;
• How continuation coverage might terminate early;
• Premium payment requirements, including due dates and grace periods;
• A statement of the importance of keeping the plan administrator informed of the addresses of qualified beneficiaries; and
• A statement that the election notice does not fully describe COBRA or the plan and that more information is available from the plan administrator and in the SPD.

This entry was posted on Sunday, November 29th, 2015 at 10:22 pm and is filed under
Benefits.
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