Retro Termination Health Insurance Law Colorado

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“The PEO I work with here in Nameless State does not offer COBRA as an option for employees after the employer leaves the PEO. I questioned this policy and the PEO owner stated that their attorney determined that if the contract between the employer and the PEO was terminated there was no need to offer COBRA, the reason given that employers would use the PEO as a ” dumping ground” for unhealthy employees. I do not know if there is a set ruling for all PEO’s, but it would be interesting to find out.” Todd read this and let us know your thoughts. Most PEOs offer some kind of cobra after the contract is over but I think this owner is getting bad advice. Also the conclusion that it becomes a dumping ground has no merit. Remember people need to pay for the premiums thus if the employer gets health insurance then there is really no need to be concerned. He could make it a revenue generator by charging for the cobra services. - If the employment is truly joint - there may be arguments that the termination of joint employment with the PEO would constitute a COBRA qualifying event. I don’t believe this is clearly settled and it may be that the IRS’ rejection of co-employment and position that the recipient organization is the employer would prevent this in the context of COBRA. (5) Finally, another issue is responsibility for individuals already on COBRA at the time of the withdrawal from the PEO. If new coverage is provided by another carrier - that new carrier will usually be responsible for taking the COBRA participants as well as the active employees. However, that result can change depending on the facts.

I was out on FMLA, on disability for a severe back issue. When my FMLA ran out, I was terminated from employment. I was terminated on 8/23/2010, but my health benefits were retro-actively taken away from me, on 8/4/2010, because that was the date my FMLA ran out. My question is a two-part question: (1.

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