LTD Benefits and Medical Coverage.

[ASO Wonk]

I ran across a group that allowed employees to stay on the medical plan indefinitely after qualifying for group LTD benefits. Seems this would interfere with their COBRA benefits and a transition to SSI and Medicare where appropriate.
Any opinions? Thanks.

 

[arnguy]

What? Again?

 

[somarco]

Highly unusual. Can happen, but usually only in VERY large companies.

Essentially they put these people in a special class for early retirees. This is very costly to the company and is going to be phased out along with traditional retiree medical. The companies cannot afford to continue those benefits.

 

[Alston]

It used to be more common way back in the early 90s.

Health insurance is just too expensive to give away to early retirees like it was a free air freshener for their cars.