Can they drop your medical benefits after handing in letter of resignation?

[irish123]

I handed in my letter of resignation 3wks ago. I have 1 more week to go. I noticed on my check on Friday that they didn't take out any money for my medical benefits. Unable to speak to anyone in HR due to the holiday. Is this legal? I was told that I would be covered until the end of Jan. Then I could get COBRA. I hope they don't think that I am going to pay for Cobra for the month of Jan. I have a medical appt on Jan 13th ,.so I still need these benefits. I just have this feeling that they are going to try and screw me. HR and my supv are shady. Can anyone please give any advice as what should I do? Thank You.

[SuesquatchRN, BSN, RN]

the key here is, that without a contract,....they.can.do.ANYTHING.they.want.

No. Not under COBRA. They may try, though.

[SuesquatchRN, BSN, RN]

This may vary by state. In my state, your last day of insurance coverage is your last day of work or date paid through by last pay check. Then COBRA is offered to you within 30 days. It's usually at the end of a month following your last date of employment. So coverage is not continuous - it's retroactive once you take COBRA and pay for it. This creates problems when you are needing to use your coverage and it shows terminated at your insurance company because you are in that one-two month window between termination and COBRA covering you retroactively.

COBRA is federal legislation and supersedes state.

[Multicollinearity, BSN, RN]

COBRA is federal legislation and supersedes state.

Right. But the employee is not on COBRA until employee coverage terminates. Different states may have different regulations regarding last day of coverage while employed and before COBRA is offered and accepted under the federal regs.

[SuesquatchRN, BSN, RN]

Right. But the employee is not on COBRA until employee coverage terminates. Different states may have different regulations regarding last day of coverage while employed and before COBRA is offered and accepted under the federal regs.

Nope. You MUST be covered with no lapse if you elect it, and you must be covered throughout the period for which you have paid. Otherwise every employer-biased state would be loopholing it.

:)

[chelynn]

The easy answer here is that is was the third paycheck the OP got in Dec and since they already took out the premiums from the first two Dec checks nothing was taken out of the last one. Nothing scandelous going on. Relax

[Multicollinearity, BSN, RN]

Nope. You MUST be covered with no lapse if you elect it, and you must be covered throughout the period for which you have paid. Otherwise every employer-biased state would be loopholing it.

:)

Sue,

Employers in my state send (always certified mail) COBRA enrollment paperwork within one month of the employee losing regular employee coverage after termination. Employers (here) do not offer COBRA coverage before the employee actually terminates. Coverage is retroactive, but it's rarely without a temporary and reversible lapse due to the time between employer-provided coverage ending and COBRA beginning.

Also, a surprising number of employers are exempt from having to offer COBRA.

[SuesquatchRN, BSN, RN]

Yes, but now we are hair-splitting, M. The point is that the lapse in coverage must be reversible so that the employee can not be denied future coverage or medical care during that gap.

[Multicollinearity, BSN, RN]

Yes, but now we are hair-splitting, M. The point is that the lapse in coverage must be reversible so that the employee can not be denied future coverage or medical care during that gap.

I didn't think we were hair-splitting. I've had this happen myself - needed a procedure - it was scheduled - had it canceled because I had lapsed right after termination and my COBRA would not be retroactive for a few weeks. It's an annoying pain in the rear because you are in fact paying for the coverage, but it's hard to use in the in between time. How can you have a procedure when the hospital or provider calls to verify your coverage and you show terminated? Then you try to explain that your COBRA is being processed - and the provider doesn't want to do your procedure. And they cannot precertify anything with the insurance company because you don't show active on the coverage. But then when you pay for the COBRA, you will be covered back, retroactively.

[SuesquatchRN, BSN, RN]

That doesn't vary by state, though. It varies by insurance company.

[chelynn]

You two are not helping the OP with you back and forth issues.. Maybe should stick to the topic better.

[Multicollinearity, BSN, RN]

That doesn't vary by state, though. It varies by insurance company.

Right, COBRA does not vary by state.

[SuesquatchRN, BSN, RN]

Anyway. The point is that she has to be offered coverage under COBRA and they have to start/reinstate it so that she has no lapse in coverage.