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Death is NOT an involuntary termination of employment.
Wow Dave, I'm shocked. If there's one thing I thought I knew about mortality, it's that it's rarely voluntary.
Cobra Subsidy On Voluntary Plans
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Wow Dave, I'm shocked. If there's one thing I thought I knew about mortality, it's that it's rarely voluntary.
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If I understand this:
If an employee gets laid off, fired or terminated (without gross misconduct), the employee and dependents get the subsidy
If an employee quits and feels he/she would have been adversely harmed by one of a series of events, that employee and dependents could get the subsidy
If an employee drops dead because the boss gave him a heart attack thinking he could suffer a "reduction of hours/pay decrease/relocation/bad burrito from Taco Bell/etc" his or her dependents don't get the subsidy
Who wrote this stuff?
And these people want to run the health care?
If an employee gets laid off, fired or terminated (without gross misconduct), the employee and dependents get the subsidy
If an employee quits and feels he/she would have been adversely harmed by one of a series of events, that employee and dependents could get the subsidy
If an employee drops dead because the boss gave him a heart attack thinking he could suffer a "reduction of hours/pay decrease/relocation/bad burrito from Taco Bell/etc" his or her dependents don't get the subsidy
Who wrote this stuff?
And these people want to run the health care?
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Ok I am confused on the death of an employee.
Does that mean the spouse of the deceased employee does not qualify for the subsidy?
Dave
Where did that publication come from?
I am advising my clients that outside of gross misconduct is it really worth hiring an attorney to interrupt involuntary?
It would cost at least $5,000 to challenge an upset employee on this.
Does that mean the spouse of the deceased employee does not qualify for the subsidy?
Dave
Where did that publication come from?
I am advising my clients that outside of gross misconduct is it really worth hiring an attorney to interrupt involuntary?
It would cost at least $5,000 to challenge an upset employee on this.
- 3,384
That is how I would interpret this. If the employee dies, no subsidy for COBRA for the surviving dependents.
This version is from Conexis, a COBRA administrator now owned by Word & Brown. I have seen the IRS pub for this (have to find the link) and it is identical.
Probably too expensive to challenge since the overall subsidy might not even be that much.
PS - here is the IRS guidance on this, which is the master source.
http://www.irs.gov/pub/irs-drop/n-09-27.pdf
Bottom page 5 and top page 6: "In addition, involuntary termination does not include the death of an employee or absence from work due to illness or disability"
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Thank you
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