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Q: One of our employees is leaving for a new job. Benefits there will not be in effect for 90 days. We have offered COBRA. Because of the cost involved, if she does not elect it prior to leaving and becomes ill in the interim, can she change her mind, say after 50 days, and ask to come back onto our small group plan by back-paying the premium? Is the insurance company obligated to pay the cost of her illness?
A: If you have more than 20 employees, you must give the employee a 60 day election period from the time they receive the COBRA packet. As long as they elect COBRA before the election period expires, any claims that occur during this time must be paid based on the benefits they had before the qualifying event. Click Here for more information on a more affordable alternative to COBRA.
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