In the case where only a dependent is electing coverage our system needs to have an individual record created for the dependent.
Why does all this have to happen?
When a dependent independently elects COBRA coverage no matter what the qualifying event, the carrier will require a new record to be created for that dependent so they can be considered the policy holder. In the case of a divorce, the employee is still being covered so the separated spouse would need their own plan. In case of employment termination, when the employee doesn't elect but the dependent elects, the same rings true in that the carrier will now want to set the electing dependent up as the primary policy holder since the terminated employee is no longer going to be covered.
NOTE: You only need to follow these steps IF the dependent is enrolling in the COBRA plan independent of the employee.
Follow these steps in order to manage the COBRA for a dependent independently electing COBRA:
1. Use the "Add Employee" function to create a record for the electing dependent
- NOTE: Assign the dependent to the same classes/divisions/departments/payroll group as the employee was assigned and use the employee's hire date for the dependent hire date. All other personal demographics (name, address DOB, SSN) should be that of the dependent electing coverage.
2. Use the Modify tool to go in and enroll the electing dependent into the initial coverage he/she will be electing under COBRA.
3. Terminate the newly added dependent record.
- NOTE: Use the same termination date that was used to originally drop coverage the first time.
4. Use the Manage COBRA link to access the COBRA tool for the electing dependent.
NOTE: These above steps need to be followed when a spouse is independently electing or if a minor child is electing coverage on their own. In the event that a spouse and children are electing but not the former employee (or still current employee in case of divorce) you CAN add the children under the spouse record.
Employee & any dependents electing COBRA: Use the manage COBRA feature under the employee record. No special steps needed.
Spouse only electing COBRA. Create independent record for the spouse and follow steps 2-4 to finish setup.
Spouse and children electing coverage: Create independent record for the spouse and add the children as dependents and follow steps 2-4 to finish setup.
Children only electing coverage: For EACH CHILD create an independent record for each electing child and follow steps 2-4 to finish setup. A child cannot be a primary policy holder for another child, so if you have two children electing coverage a record needs to be created for each child.