Q:I have an employee who was laid off because we are closing an office. The employee will have another job beginning immediately after the lay off. There is no lapse in insurance coverage, but the new insurance has a 12 month pre existing clause. The employee has had creditable coverage for the preceding 12 months. Does COBRA apply in this case?
A: An employee can only have COBRA continuation and other health insurance at the same time when: The new employer's group health plan has pre-existing exclusion or limitations clause. Once the new health plan's pre-existing exclusion or limitations period has been satisfied, the COBRA coverage must be terminated.
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