Feb 10, 2009

TERMINATION OF COVERAGE | Plan Provisions and Taxation

In the absence of any provisions for continuation or conversion, group medical expense coverage of an employee generally ceases on the earliest of the following:

  • The date on which employment terminates (In some plans, coverage ceases on the last day of the month in which employment terminates.)

  • The date on which the employee ceases to be eligible

  • The date on which the master contract terminates

  • The date on which the overall maximum benefit of major medical coverage is received

  • The end of the last period for which the employee has made any required contribution

    Coverage on any dependent usually ceases on the earliest of the following:

  • The date on which he or she ceases to meet the definition of dependent

  • The date on which the coverage of the employee ceases for any reason except the employee's receipt of the overall maximum benefit

  • The date on which the dependent receives the overall maximum benefit of major medical coverage

  • The end of the last period for which the employee has made any required contribution for dependent coverage

    However, coverage often continues past these dates because of federal legislation or employer practices.
  • 1 comments:

    Centenial College said...

    Nice to read your Post!! Thanks for be aware of this Plan!!

    employee benefits

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