Juan has been an employee with ABC company for 10 years. Due to change in market...

Juan has been an employee with ABC company for 10 years. Due to change in market demands, he has been laid off and is concerned about his medical benefits because his young child has life-threatening medical conditions. He will:

A. be able to continue purchasing medical insurance, at his 102% of cost for 18 months

B. be denied additional coverage after his termination date because of the pre-existing conditions.

C. be able to continue purchasing medical insurance at the same cost as he when he was employed for 36 months.

D. will be discharged using employment-at-will doctrine.

Solutions

Expert Solution

The correct option is:

"A. be able to continue purchasing medical insurance, at his 102% of cost for 18 months."

Juan has the right to continue with the employer medical insurance plan under the Cobra, the 1986 Consolidated Omnibus Budget Reconciliation Act, which can give him family medical protection for upto 18 months even for a pre existing medical condition. Jaun can opt for Cobra within 60 days of losing his job or receiving notification of eligibility of Cobra program (which ever is later).

As far as premium is concerned, Jaun will need to pay for (100 + 2) of the insurance cost i.e. 100% of the cost of insurance & 2% for administration cost.

keosha answered 1 year ago

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