Have a client that says their COBRA ends on January 15th. Can COBRA end on that date or does it always terminate at the end of the month? Secondly, since this is inside the OEP, can I request an effective date of January 15th or are the only effective dates on the 1st of the month?
Cobra
- Thread starter munson
- Start date
- 483
Why not just get them into a plan that starts Jan 1 and terminate the COBRA?
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- #3
- 2,181
Yes, Cobra can end in the middle of the month. I have several groups with an effective date of the 15th of month, when one of their employee's leave if they elect cobra it would be effective the 15th.
Do what ctg suggested.
Do what ctg suggested.
- Thread starter
- #5
- 2,181
The new plan would begin on the 1st, they may be able to get a refund of unearned premium if they send in a cancellation notice before the 15th of the month they are completing their new app in. I am trying just that, I dismantled one of my groups on Monday with a 15th of the month effective date, but they also renewed the group effective Oct 15th, the plans I took become effective 1 Nov. I will send in the letter cancelling their group this coming Monday. I did warn the owner he may be out 15 days premium but he wanted to keep them all covered the whole month, but the company is telling me if they receive the letter before the 15th he will receive a half month refund.
There is a 30 day grace period on premiums, why not just have him hold the payment for 2 weeks, if he doesn't need healthcare in that time he takes his new plan on January 1st and lets the Cobra lapse, there is no need to cancel, it will automatically lapse if no premium is received-I have had multiple clients do this over the years.
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- #8
I like this idea. Healthcare.gov tells me I will have 60 before the Jan 15 date to set up an effective date for the 15th because this is a SEP. Is that correct?
