Q:I was wondering if a union or company can add money to the cobra to pick up retirees when laid off. Both our plants have the same insurance policy but when laid off people got their cobra price is was different amounts?
A:The premium cannot exceed 102 percent of the cost to the plan for similarly situated individuals who have not incurred a qualifying event, including both the portion paid by employees and any portion paid by the employer before the qualifying event, plus 2 percent for administrative costs.
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