COBRA issue
tracey
18 Posts
We are an aviation firm in Michigan with 60 employees between two entities, each with its own FEIN, but with common officers and ownership. Currently,
we offer two health insurance covers - BCBS and a local HMO. Because our
participants co-pay, we have 55 on the HMO (reasonably priced, RX bft), and only 5 on BCBS (expensive, no RX). When the plan was set up, all employees
were paid under one company, and then it became necessary to separate
the second. Apparently, the question of two entities never came up with BCBS, but it was disclosed to them by a recent audit, and now they want to cancel
4 of the 6 BCBS participants because they are paid on the other company's
FEIN. The reason we wish to continue the BCBS cover is because it is the
only instrument to effectively cover pilots who live out-of-state. HMO's
just won't work. Long winded (sorry), but here's the issue: one of the
guys they want to cancel is terminated, and on COBRA. If I have to pull these
out-of-staters and get individual policies for them, the COBRA guy's price will
go through the roof. Can I pass the new price on to him, or must the company
honor his original payment amount? Thanks for anything useful....
we offer two health insurance covers - BCBS and a local HMO. Because our
participants co-pay, we have 55 on the HMO (reasonably priced, RX bft), and only 5 on BCBS (expensive, no RX). When the plan was set up, all employees
were paid under one company, and then it became necessary to separate
the second. Apparently, the question of two entities never came up with BCBS, but it was disclosed to them by a recent audit, and now they want to cancel
4 of the 6 BCBS participants because they are paid on the other company's
FEIN. The reason we wish to continue the BCBS cover is because it is the
only instrument to effectively cover pilots who live out-of-state. HMO's
just won't work. Long winded (sorry), but here's the issue: one of the
guys they want to cancel is terminated, and on COBRA. If I have to pull these
out-of-staters and get individual policies for them, the COBRA guy's price will
go through the roof. Can I pass the new price on to him, or must the company
honor his original payment amount? Thanks for anything useful....
Comments
not to have to skewer this guy!