Another COBRA question

[LGilmore]

"The problem is that the new carrier has blended rates, and the max rate up would apply for everyone."

Is that something you would normally explain to a cobra continuant? How many months does he have left?

Send him the stuff ahead of time, you'll either get the paperwork or the new higher premium. If he sends the check, send him back the difference and make the move later. If he sends the app, get everything else going. In other words get his app first rather than last.

Are you counting on him to reduce the group rate?

 

[ABC]

I would contact the Cobra administrator and ask them the laws regarding this situation.

If there client is admistering Cobra themselves this could be a very sticky situation.

Assume nothing

 

[bluemarlin08]

My bet is the former employee is not required to do anything except pay the premium, even though the rate might increase.
As I read your post, the whole group is going to be impacted negatively with higher than normal rates if they switch if this guy doesn't complete a new app, is that a fair understanding?
The group might just be stuck with the current carrier until this guy drops off COBRA. I would think you are on shaky ground if you put his COBRA in jeoprady.

 

[LGilmore]

You can change plans and have someone on cobra, done it many times. Usually it's just notifying the change and the cost. Cobra does not REQUIRE an employer to stay in a plan for 18 months, it requires an employer to offer coverage for that time period. Change does not have to be cheaper.

I am wondering if the plan is having the younger cobra person helps the group rate go down? If that is the case be careful anyway because the final rates might change as most plans will take into consideration how much time a cobra has left with the company. They can adjust the final rate if they see that cobra continuant dropping off in a few months.

Just send the stuff registered mail and change the billing. Talk to underwriting and let them know. I've had adjustments made for special situations, ask.

 

[Mr. Bill]

If someone's affiliated with cobrahelp.com, maybe the question can be posed there?