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Q: I have an employee who is commission paid and is over 60+ days past due on his premium. A request to cancel his medical coverage retro-actively 30-days was faxed to the carrier yesterday. I was just notified that management is terminating his employment today. Am I required to offer this employee Cobra? If so, will the former employee have to pay his premium up to the date of his termination of employment first? If so, how long of a time frame do I allow him to become current on his premium prior to his Cobra enrollment? Also is it possible for me to offer Cobra effective the date of termination of employment without the former employee paying his past-due premiums?

A:  If your employee’s health insurance was not active the day before the COBRA qualifying event, you do not have to offer him continuation coverage. You should contact your health insurance carrier for your responsibilities about accepting past due premiums from your employees.  If they state you can receives payments from the employee that are more than 60 days past due, then you may have to offer COBRA continuation coverage if you have more than 20 employees. The employee would have to pay the past due premiums before he would be allowed to continue the coverage through COBRA.