Situation: An employee is given a 90 introductory period during which no benefits are given. The introductory period of 90 days was extended an additional 30 days to see if the employee could meet the job requirements which he had not met in the first 90 days. After 90 days we are obligated to offer insurance and the employee elected to get the insurance. After the 30 day extension the employee is terminated as he could not meet the job requirements. He is notified that he can COBRA. He has 60 days to notify the employer on whether he wants to do this. The health plan agent has informed the employer that they will have to pay the premiums for this employee until he decides what he wants to do and that if he opts out the employer is out the premiums. Is this really the way it works? We are a small company and watch our budget closely. If we have to pay we will but it just doesn't seem fair.

Why should you have to pay premiums for a terminated employee? The way most employers handle this situation is to cancel the coverage and reinstate it back to the cancellation date when the employee elects COBRA. I think your insurance agent just wants to get the commissions for the additional premium. Contact the insurance company directly and ask them.
If that doesn’t work contact the state insurance department.