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COBRA Responsibility to a Laid-Off Employee

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  • 01-09-2010, 04:26 PM
    william v.
    COBRA Responsibility to a Laid-Off Employee
    My question involves labor and employment law for the state of: florida. Seven months ago our company layed off a long time emloyee because of the current recession. We lease our employees through a PEO. We also bought our health insurance through this PEO. We queried their H.R. department at the time of the layoff to find out how to handdle the Cobra responsibility. We were told they would handle it directly with the layed off emplyee. All went smoothly until open enrollment six months later. The new premium rate from their health providor nearly doubled. they helped us find simlar coverage at a much better price, but told us we must buy it on our own, but they would still administate it through their payroll dept. Before we signed up with the new health provider we called the PEO's H.R. dept and asked if we should include our former employee. We were told that he would remain on Cobra through their continuing poilicy. Therfoe we did not include him on our new policy. The former employee was given a new premium to send(made out to the PEO as before) and continued to send them premium checks. Two months later the EO's H.R department notfied us and the former employee (They also retuned his last two uncashed premium checks) that it was now our responsibiilty to provide him with Cobra. We will do this if it is our resonsibility. If so why didn't the PEO notify us sooner? They're the H.R. experts we depend on. We care about this employee and now he is uninsured.The PEO says that fla. law prevents them from supplying his Cobra. Obvilously they don't care that he has medical bills and has just gone on SSDI. What course of action can we take to solve this problem?
  • 01-11-2010, 07:36 AM
    Mr. Knowitall
    Re: COBRA Responsibility to a Laid-Off Employee
    If you want to know why the PEO didn't contact you sooner, you will have to ask them. I would assume that it's because they're a pretty large organization and it took them a while to figure out what was going on.
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