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Employee Benefits Law Report Reporting on recent trends and developments affecting employee benefits

Tag Archives: COBRA

Promising Health Care Plan Benefits in Excess of Plan Terms Can be More Costly Than Anticipated

Posted in Health and Welfare Plans

We occasionally hear that an employer wants to promise greater health care coverage than is provided under the plan terms, either in a sympathetic scenario, or to facilitate a separation. Unfortunately, this “generosity” can leave the employer obligated to provide costly benefits, without insurance coverage. 

Treating a Qualified Beneficiary on Short-term Disability as Continuing to be an Eligible Employee

Take, for example, Clarcor v. Madison National Life Insurance.  The employer maintained a self-funded health plan, and purchased a stop-loss policy.  The policy provided that coverage was limited to benefits paid in accordance with plan terms. Under the plan terms, …