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Health Insurance Guys: COBRA or not? | The Health Insurance Guys


In the case of fewer than 20 employees, he would be subject to Cal Cobra, where the company’s main duty is to have the insurance company contact the employee who would then have the responsibility of completing the paperwork (or not).

Federal COBRA is for 18 months with a possible extension of an additional 18 months for certain qualifying events.

Cal Cobra allows coverage for 36 months. A sobering fact of life in today’s business climate is that if the company goes under, health insurance goes away for everyone.

Tom: Generally, 30 hours per week is what is required by most employers to be eligible for group benefits.

This doesn’t mean that an employer is required to offer benefits to employees, but if the employer offers to one eligible, he/she must offer to all eligible. The feds can be strict about discrimination.

Regarding the benefits and rates, Nils is eligible for the plan he has on his last day of coverage.

Generally speaking, the monthly plan premium will be 102 percent of the total gross rate the employer is paying for the plan now. He can also figure out what his COBRA rate will be if a personnel policies and procedures manual has the employer and employee contribution to premium.

By the way, extensions are also available for dental and vision plans under COBRA.



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