One of the employees in your organization has come to you with a potential probl

Question

One of the employees in your organization has come to you with a potential problem. The employee is concerned because their immediate supervisor is disputing a potential claim made under COBRA. Specifically, the employee is getting a divorce and feels that his ex-spouse should be made aware of the possibility of COBRA benefits. The supervisor thinks this idea is silly and that only employees are eligible for COBRA. Answer the following questions based on the above situation: 1. Who is covered under COBRA? That is, who is correct in the above situation, the employee or the supervisor?
2. The supervisor feels that anyone who files a claim under the act should have to pay the premium amount plus 25% for administrative fees. What is your reply? One of the employees in your organization has come to you with a potential problem. The employee is concerned because their immediate supervisor is disputing a potential claim made under COBRA. Specifically, the employee is getting a divorce and feels that his ex-spouse should be made aware of the possibility of COBRA benefits. The supervisor thinks this idea is silly and that only employees are eligible for COBRA. Answer the following questions based on the above situation: 1. Who is covered under COBRA? That is, who is correct in the above situation, the employee or the supervisor?
2. The supervisor feels that anyone who files a claim under the act should have to pay the premium amount plus 25% for administrative fees. What is your reply? One of the employees in your organization has come to you with a potential problem. The employee is concerned because their immediate supervisor is disputing a potential claim made under COBRA. Specifically, the employee is getting a divorce and feels that his ex-spouse should be made aware of the possibility of COBRA benefits. The supervisor thinks this idea is silly and that only employees are eligible for COBRA. Answer the following questions based on the above situation: 1. Who is covered under COBRA? That is, who is correct in the above situation, the employee or the supervisor?
2. The supervisor feels that anyone who files a claim under the act should have to pay the premium amount plus 25% for administrative fees. What is your reply?

Explanation / Answer

1. Consolidated Omnibus Budget Reconciliation Act known as COBRA is an act which ensure continuting of insurance of enployees even after they quit the employment.

In an organization COBRA typically covers employees, their spouses and their dependent children.

The employee is correct in the above situation wherein in divorse cases the spouses coverage may continue till 36 months.

2. In order to continue the coverage, the employee has to pay premium on their own expense to their employer plus only a 2% of administrative fees.

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