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Premium Collection Program for Furloughed Employees
In an effort to assist you through these difficult times, we have developed a new program through which our COBRA clients may continue their employees’ benefits and have us collect the applicable premiums. We will be running the program through our COBRA platforms for ease of administration for you all. We have outlined our process below for clients who are going through a temporary furlough, as well as for those clients who must permanently lay off portions of their workforce but who wish to offer a subsidy to the full COBRA premium.
Temporary Furlough
Coverage is maintained as an active employee; COBRA is not applicable unless payment is not received.
We have developed general communications to use in either of the above situations and will work directly with each client to ensure that the communications meet your needs. Other items to consider as you are preparing for a temporary furlough, which can be incorporated into the communications, include:
Permanent Layoff / Termination of Employment
Active coverage terminates and COBRA applies, but the client wishes to subsidize the applicable COBRA premium.
We understand that these are difficult decisions, but rest assured that we have a framework in place to assist you with the process of notifying your employees and providing them with some level of support and assurance. Please contact us with any questions you may have.