Yesterday, attorney Kathryn Grigg of Axley Brynelson, LLP, explained employers’ obligations to offer health insurance continuation and conversion benefits to an employee’s former spouse and dependents following a divorce. Today, she’ll discuss how the election to continue coverage works—and the circumstances under which that coverage may be terminated early.
 |
Election to Continue Group Coverage
Under federal law, the former spouse has 60 days after receiving the notification from the plan administrator in which to elect continuation of coverage. The plan must permit payment for continuation coverage during the period preceding the election so that the former spouse can be assured of no gaps in coverage.
The former spouse must make the payment within 45 days after the election. Coverage must continue without interruption and may not terminate for 36 months, unless:
- The former spouse fails to make timely payment.
- The employer ceases to maintain any group health plan.
- The former spouse begins coverage under another group plan.
- The former spouse becomes entitled to Medicare benefits.
- The former spouse engages in conduct that would justify the termination of coverage of a similarly situated participant (e.g., fraud).
Is your compensation competitive? Stay up to date on all relevant compensation and benefits laws in your area with BLR®’s Employee Compensation in Your State. Learn More
The Date of Notice Is Important
You must pay special attention when you’re notified of an employee’s divorce. Notice that the divorce has been officially granted (not merely that it’s pending) triggers a deadline by which the employee’s former spouse must receive written notice of his or her continuation or conversion options for group or individual plans. If the former spouse makes a timely election, take care to ensure that there are no gaps in coverage.
Although you aren’t responsible for any share of the premium costs for the former spouse’s plan, be prepared for the burden of administrative costs and time.
Major life changes (including divorce) for employees can have major effects on compensation, and you still have to be aware of your legal obligations. All the changes in compensation law can be a lot to keep track of, but we’re here to help with BLR®’s Employee Compensation in Your State. This unique service is your reliable, work-saving resource for compensation laws. You can depend on it to understand the complicated web of wage and hour regulations that apply in your state, and you can count on its trustworthy wage and salary survey data on hundreds of jobs to keep your pay scales competitive.
HR and Benefit Managers have relied on this “benefits bible” for over 15 years as their answer for simplified and clear regulation analysis!
Arranged alphabetically by topic, Employee Compensation in Your State explains in plain English all key state and federal wage and hour laws—from minimum wage to overtime classification.
Is your compensation competitive? Stay up to date on all relevant compensation and benefits laws in your area with BLR®’s Employee Compensation in Your State. Click Here
Employee Compensation in Your State includes:
- A–Z state and federal compensation law explanations. Get fast, practical answers with federal to state comparisons—just look up the topic alphabetically!
- Recommended rate ranges specific to YOUR state and region. BLR’s unique system of pay grades and rate ranges, plus point-factor analysis, lets you price any job in minutes.
- Free newsletter. Employee compensation newsletter helps keep you on top of new state and federal compensation and benefits laws. Six updates throughout the year keep your book current with all new compensation laws.
- Free companion website. The latest news and alerts that affect compensation administration at your fingertips 24/7, along with forms, surveys, and an online version of the newsletter.
- Job descriptions. Complete instructions for the job descriptions process along with job description examples.
- Complete wage and salary administration guidance. Walks you through the entire compensation process with step-by-step instructions for analyzing and pricing jobs, writing job descriptions, employee compensation policies, and more!
The service is available for 43 states and the District of Columbia, and is renewed annually until cancelled.
As far as notice, is actual notice required, or is constructive notice sufficient to trigger the deadline for the written notification to the former spouse?