Part-time Employee and Health Insurance

We have an employee that will be dropping from 30 hours/week to below 30. She will no longer be qualified as full-time. The employer will no longer be paying for her to continue the coverage thru our group health insurance. Is there an Indiana law that would prevent her paying for the premium at the group rate to continue the group coverage? Cobra is quite expensive and we would like to enable her to get the more reasonable group rate that the employer is paying for full time employee's coverage.

Answer:

I contacted the Department of Insurance in Indiana on your behalf. Here is what Carol Cutter, the Deputy Commissioner forwarded to me.

"There are several issues to be addressed, within this question.
  1. We presume the 30 hour requirement is for full-time, benefit eligibility?
  2. If the employer is no longer contributing to the cost of the insurance plan, then that 100% cost the employee would pay is what COBRA is. COBRA is not another plan, or different coverage, but merely continuation of the same benefits the employee had under the employer plan. The only difference is the employee has to pay 100% of the monthly cost.
  3. Is COBRA available to her? If the employer has fewer than 20 full time employees, the employer is not required to offerthe COBRA extension of coverage. Some employers do anyway, but the COBRA law does not require them to.
  4. Is there some medical reason this employee cannot get her own individual health plan?  Many times that premium will be much less than the employer group coverage costs.
With more information about these issues, we'll be able to give you a better response."

I'd contact Ms. Cutter directly at her email address, and provide the additional information, and see if she can provide you with some additional clarification. She can be reached at: ccutter@doi.state.in.us

0 comments
CarLifeHealthLong Term CareDisabilityDentalBusinessHomeOther