Non Employee Group Coverage

[bluemarlin08]

I have a client that died in a work related explosion. The company is a large multi national company. In talks with their HR, they have told her that they will pay medical insurance till she turns 65, 9 years. How can they do this? I thought group coverage was only for employees and their dependents and if the employe was no longer working, then their coverage terminates except for COBRA. What say you?

 

[somarco]

Probably part of a work comp settlement. If the plan is self funded, and I imagine it is since you said it is "large multi-national" they can pretty much do anything they want.

If they don't have a survivor benefit in the plan doc they should consider one. Chances of getting caught in a DOL or IRS audit are slim, but if anyone else is in a similar situation and they don't get "free" coverage they can expect a lawsuit.

 

[bluemarlin08]

It is part of the WC settlement. The company is telling her the WC benefit is like 335,000. Is a death WC claim pretty much by the books?

 

[somarco]

All I know is WC plays by different rules. Some benefits are defined at the state level while others are negotiated.

You might want to repost this on the P&C forum or ask a local WC guy. I used to know some in your area but that was years ago.

 

[djs]

If the client died in a work related explosion, how many medical bills can they run up between now and when they would have been 65?

In all seriousness, why do you care? Not trying to be flip, but the company is doing the right thing. Let them. I understand it might impact you, but if they say they will do it, then make it happen for the client.

Now, if you are asking just to understand the rules, I agree with you.

My guess is this is part of a liability settlement, not a workers comp settlement. I could be wrong on that though.

Dan

 

[leevena]

If the client died in a work related explosion, how many medical bills can they run up between now and when they would have been 65?

In all seriousness, why do you care? Not trying to be flip, but the company is doing the right thing. Let them. I understand it might impact you, but if they say they will do it, then make it happen for the client.

Now, if you are asking just to understand the rules, I agree with you.

My guess is this is part of a liability settlement, not a workers comp settlement. I could be wrong on that though.

Dan

I believe the post said that they company would pay "her" medical insurance premiums, not pay the decedents medical bills.

 

[djs]

I assumed that, but then that makes the assumption that they are a couple and the guy was the one involved in the accident and well, a few assumptions, though its the only logical conclusion.

Of course, figuring its the spouse, not the actual employee, is why I figure its part of a liability settlement, not a workers comp settlement.

Dan