Does an employer have a legal obligation to maintain health ins. for a certain period of time?

Question

can ins . be canceled immediatly upon term.

Answer 1

There are no laws about employers and health insurance. It is purely a 'good will' gesture of the company even offering it.

Answer 2

No to the first question. Yes to the second (canceled immediately upon termination). Depending on how the premiums are paid (are they paid the month they are due or the same month) is when they will be terminated. So, if you paid a month ahead, you shouldn't be terminated until a month after you leave employment, unless they repay you the amount you paid in.

However, you will be offered COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985).

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires most employers with group health plans to offer employees the opportunity to continue temporarily their group health care coverage under their employer's plan if their coverage otherwise would cease due to termination, layoff, or other change in employment status (referred to as "qualifying events").

Answer 3

Normally coverage is terminated upon the last day of the month you were terminated.
IE- you get fired 8/29/07
Your health insurance will terminate 08/31/07

Premiums are billed monthly not prorated for partial months coverage.
Since your premium has already been paid by your employer -they gain nothing by terminating your coverage prior to the last day of the month.

Answer 4

No but the insurance company (COBRA) will offer you extended insurance at a really high rate.

Answer 5

No, all employers must offer COBRA for at least a year.