Sales of individual insurance and guaranteed products have increased in cases of expenses, separation agreements should include clauses requiring the insured to grant the insurance refund cheque to the uninsured spouse who paid the costs within a specified time frame, as well as statements of verification of amounts provided by the insurance company. Employers often agree to maintain a worker`s health insurance coverage under a separation agreement. While this seems like a good idea, it can cause significant unwanted liability. Most health insurance companies deal with a separation and dissolution judgment, as well as a judgment on the dissolution of the marriage. This means that if you are subject to a judgment of separation of the remedy, you no longer depend on your spouse or partner to guarantee health insurance. However, if your spouse or partner has a government plan and you are subject to a separation judgment, you may be able to remain dependent on health care. It is absolutely necessary to confirm this directly with the plan. As a general rule, a spouse who is covered by health insurance is encouraged to keep the former spouse below the plan as long as the plan allows or until the spouse`s obligation to assist ends. Your spouse`s employer is not required to subsidize your insurance, but may charge you 102 per cent of the fee. 29 U.S.C No.
1162 (3). This increase in costs and the cost of unsubsidized health insurance after the end of COBRA coverage are a factor that should be taken into account in your post-dissolution requirements. This type of agreement also compromises the employee`s ability to continue coverage under COBRA. As you know, COBRA has certain reporting and election deadlines caused by qualifying events such as reduced working time or separation of employment for reasons other than gross misconduct. If you and your former employee do not meet the registration and voting deadlines because you both felt that you could agree to continue with their health insurance coverage, your insurance agency could argue that COBRA no longer applies because you missed the deadlines and refused to cover the employee. In this case, the employee would probably argue that you have to insure them yourself, which would have been the time of the cobra cover. What should an employer do? If you wish to make additional health insurance part of the separation agreement, you agree to reimburse staff for the costs of their COBRA premiums. I say refund, because you do not want to be responsible for transmitting the COBRA payment from the employee to the carrier in a timely manner. It will be safer for you to bear this burden on the employee and to charge the employee the refund of his COBRA premiums after payment. In this case, the obligation to pay in a timely manner and the risk of not paying the onus is on the former employee, not your company.