A multi-employer plan is a group health plan where more than 1 employer contributes. Usually there is one or more collective bargaining agreements between a union type situation and more than 1 employer.
Multi-Employer Plan Election Notices
When the plan is a multi-employer plan, the election notice SHOULD be provided within 14 days from the date of the qualifying event or loss of coverage, ALTHOUGH multi plan administrators are allowed more than 14 days to provide the election notice, IF specified in the plan rules.
But administrators (even for more than one employer group) who take the entire 44 days to mail a simple notice are treading on legal thin ice with no reward. One federal court case ruled an employee who suffered with a chronic illness should not have to wait more than 14 days to be provided an election notice because of the medical hardship (lack of care) for the former employee, even though after the fact, health coverage was made retroactive to the day of loss.
Multi-Employer Plan Withdraws
When an employer stops contributing to a multi-employer group health plan, the multiemployer plan can continue to adminstrate the COBRA entitlements for qualified participants of that employer. The employer's ceasing of contributions to a multiemployer group health plan does not trigger the COBRA event for active employees. Employers who stop contributing to a multi employer plan have to offer continued coverage to qualified beneficiaries only if the employers start a "new plan" to replace the active employees who were in the former multiemployer plan.
If the employer provides group health coverage to a "significant number" of employees formerly covered under the multiemployer plan, or they contribute to another multiemployer plan on behalf of the employees, the employer's plan (or the new multiemployer plan) would carry the COBRA obligations to the existing participants.
Craig Casey is an Writer, Coach, Blogger, Husband, and Former Health Insurance Agent helping people on the web since 1999 with their health insurance problems.
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