JD698
Jan 15 2004, 12:43 PM
A union health plan, as of 1/1/04, changed to self insured from fully insured. As a result, COBRA premiums increased. What is required with respect to notifying the members on COBRA of this increase? How much notice?
b2kates
Jan 15 2004, 12:47 PM
What is the plan year and what was the Cobra premium determination date?
In general only permitted to change premiums on the determination date ( once in a 12 month period).
JD698
Jan 15 2004, 01:31 PM
The plan year is January 1 - December 31. I am not sure about the premium determination date. I know the premium was not changed in over a year though. If the plan send outs a notice 30 days before payment is due, is that sufficient???
JD698
Jan 16 2004, 11:10 AM
The plan year is January to December. The determination month is April. However, we were advised by the auditors that while you can only change premiums once in a plan year, you can also change the premiums if the plan itself changes.
Is this accurate?
Is there an actual required time frame for providing notice of a premium change?
Please advise.
kowen
Jan 16 2004, 12:01 PM
I agree, you can change the COBRA rate if the rate for non-COBRA participants changes.
b2kates
Jan 16 2004, 12:49 PM
See Treas Reg 54.4980B-8 Q&A2 for the rules.
When is the applicable premium determined and when can a group
health plan increase the amount it requires to be paid for COBRA
continuation coverage?
http://a257.g.akamaitech.net/7/257/2422/14...r54.4980B-8.htm
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