Employees have the option of choosing employer-sponsored health insurance

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At Denniston Industries, employees have the option of choosing employer-sponsored health insurance at no additional cost or receiving additional pay so that they may purchase medical insurance elsewhere. What responsibilities does the employer have according to COBRA upon termination of an employee who opts to receive the additional pay to purchase medical insurance?

  • At the employee’s expense, the company must offer terminated employees COBRA coverage upon termination.
  • The company must ensure that the terminated employee has health insurance from a certified provider within 60 days of termination.
  • The company must continue coverage at the same level without additional charge to the employee.