Can Someone Elect COBRA If Other Coverage Is Available?

My company has a small group health plan with United Health Care and currently has 16 employees on the plan. I am considering hiring a sharp accountant out of college. He currently is on his parents plan as a dependent, and his dependent coverage will terminate soon, as he is graduating and will be too old as a dependent under his current plan. If I hire him, he is eligible under my small group health plan, could he elect COBRA under his parents plan for 18 months. He feels very comfortable with the benefits that he enjoys under existing plan. So my question is, can he elect COBRA if he has other coverage available to him? I appreciate your opinion on this issue.

Yes. COBRA is available to choose for 60 days after the election notice is received.

Losing child dependent status is a qualifying event for COBRA. If he is comfortable with the health plan and coverage he has now, he can choose to continue with that plan for up to 36 months. He would be responsible for paying the entire COBRA premium each month of continuation on that group health plan. COBRA is an option for him, even if he can obtain other health insurance. He will not be eligible for COBRA if he has applied for another policy and that new policy covers his medical conditions. He would not be able to use double coverage. 

Temporary and Affordable Health Plans

We are COBRAinsurance.com — a private health insurance company, established in 2001, that publishes online information on how the federal COBRA law works. We also provide an alternative to COBRA if it is unavailable or you simply can not afford it. You can remain insured and have health coverage for new illnesses or injuries with Short-Term Medical Insurance

Call For Advice: 1-877-262-7241

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