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Tina
Tina, Lawyer
Category: Employment Law
Satisfied Customers: 8183
Experience:  JD, BBA, recognized by ABA for excellence.
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A Cobra vendor is administering my Cobra in a prorated

Customer Question

A Cobra vendor is administering my Cobra in a prorated arrangement, then reimbursing my ex employees for the un used days. Is this permissible? I did not think so? I have a self funded plan and term employees the end of the month.
JA: Have you documented this or discussed it with HR?
Customer: Yes. I am HR. I have the email from the vendor saying it was ok. Former employee used 7 days, paid for a month, then termed COBRA. They reimbursed him the 21 days pro-rated. Is there some new law I am unaware of?
JA: Is the employment agreement "at will," union, full time or part time?
Customer: full time, non union. Engineers. At will
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 1 month ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 1 month ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
What does your plan contract state on your self insured plan regarding cancellation and refunds?
Customer: replied 1 month ago.
I don't know. But It is VA
Expert:  Law Educator, Esq. replied 1 month ago.
Thank you for your reply.
You need to find out, because prorated refunds are governed by the terms of your contract of insurance and this is going to be a contract issue.

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