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Insperity: Cobra fees due upon termination?

Karen S's Profile

Hello Everyone,

We are hoping to move away from Insperity, but are being told that we will have to pay $1,500 per individual currently registered with Cobra (due to the account terminating), and then an additional $250/pp per month in ongoing Cobra fees. Has anyone experienced this? Can we force the employees on Cobra onto the new provider's Cobra rather than them remaining with Insperity, or is there some other way around this?

My previous experience with another vendor was that anyone on Cobra had to choose a new Cobra plan with the new provider.

Thank you

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

You only have to pay Cobra if you are firing an employee. If you are moving out of a PEO and into either another or your own company again, make sure their medical benefits start on day 1.

No COBRA payments.

Tell the person who is quoting you to give you the section of the law where it states that this must happen.

Just remember, if you don't have medical benefits day 1, then your employees will be due COBRA.

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