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Health Insurance: COBRA

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Posted by Sheldon Weinhaus on July 14, 1998 at 10:42:06:

Although the bulletin board is presently sparse on health insurance, I am posting this notice because the press has chosen not to give much information about a Supreme Court decision entered June 8, 1998 (Geissal v. Moore Medical Corp) holding that those who had dual health insurance coverage before the date of election of whether to take COBRA coverage or not, can elect COBRA even though that continues dual coverage. Many individuals who were terminated and covered by their spouse's policy, were not even offered the right to elect COBRA coverage, and that can cost an employer a penalty (paid to the terminating worker) of up to a hundred dollars a day whether the worker needed or wanted dual coverage or not. The offer must be made. The same goes for a worker who was terminated (or quit) and luckily gets another job right away that also provides health insurance. He/she is still entitled to elect to continue COBRA coverage, and if not offered, penalties could run. Dual coverage is not a bad word. It could be less deductibles, greater caps, etc. Many workers have not been given notice and are/were entitled to it.

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