Former employee rejected COBRA?

Question

I work for a small business. An employee quit (without two weeks notice) to go work for another company. The day he quit we told him about his options as far as keeping insurance coverage through Cobra. He came in the following Friday wanting to sign the paperwork saying he rejects it because he was getting put on the new company's insurance right away (the first of the month). He was covered with us until the end of March. On the 30th of March, we get a call that he was in an accident, serious. My question is, what responsibility do we have? His family is claiming that he has 30 days to decide about Cobra (even though he'd already signed the paperwork denying it). His problem is that he has only worked for the new company for a little over a week and now cannot work and will probably be let go, thusly losing his insurance. I have a call into the insurance comminsioner's office, but just wondered if anyone had any input. Thanks.

Answer 1

You do NOT have 30 days to "change your mind" about Cobra. He had already DECLINED coverage.

However, any medical bills from the 30th, would be covered. That doesn't mean ALL medical bills from the accident! Just the things done on the 30th.

Thank God you got his declination in writing!!

Can't he get COBRA from his new employer???

Answer 2

Mom of 2 is exactly right - and I am sure they will elect COBRA as the guy probably never had a chance to even sign up for the new coverage. He can come back and take the continuation of coverage. You should ALWAYS mail the COBRA, with a certificate of mailing (not certified mail) to the last known address to prove you offered it. I would not give it to them the day they quit. If it goes into a "he said she said" situation, you will lose without proof. Take some classes on the laws of COBRA - it will scare you into paying someone else to handle it for you!

Answer 3

An ex-employee has 60 days to elect coverage. If within that 60 days he waives coverage, but the decides he does need it then, yes, they do have to give him the coverage.

Here is the site: http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html

and the relevant answer:

If I waive COBRA coverage during the election period, can I still get coverage at a later date?
If a qualified beneficiary waives COBRA coverage during the election period, he or she may revoke the waiver of coverage before the end of the election period. A beneficiary may then elect COBRA coverage. Then, the plan need only provide continuation coverage beginning on the date the waiver is revoked.

Answer 4

If he signed the waiver not accepting COBRA, and the current insurance was in effect until March 31st, then the current insurance picks it up. It falls under continuity of care - UNLESS the current insurance from your employer SPECIFICALLY has a rider stating that if a new policy begins immediately after the termination date of the old policy, the old policy is responsible.

I know it's a big endless circle of crazyness, but to my knowledge, there's no grace period to decide about COBRA - unless there's nothing signed.

Answer 5

If he was still covered until March 30 then it is the company's responsibility anything after that is his.

Answer 6

I think Mom of 2 is right.... I wouldn't mess around with the Labor Department... Its looks pretty black & white on their web site.
U.S. Department of Labor = www.dol.gov

It says you'd only have to cover him from the date he revoked his waiver... So, was that the day of the accident? or later?

Answer 7

I'm fairly sure that it's no longer your problem.

Answer 8

if he signed the reject form then you have no responsiblity . . he did decide and he rejected it. . .