Coverage Options for Terminated Employees
When an employee is terminated, their insurance coverage under their employer will cancel either at the end of the month of their termination date (most common cancellation date), or on date of termination. This depends on how the insurance policy was set up by the employer, as that's reflected in the insurance carrier's system.
Extending Beyond The Termination Date
The employer cannot extend an individual employee's coverage beyond what the carrier shows should be their last day of coverage based on their termination date and the company policy on file. The only alternative, if the employer wants to ensure the employee remains covered post-termination and wants to pay for it, is through COBRA.
Covering COBRA through Zenefits
The Zenefits system will ask the employer if they would like to cover the employee's COBRA costs for any number of months during the employee termination flow.
If the coverage is carrier-administered (i.e. some state mini-COBRA, such as Cal-COBRA), premiums will need to be paid by the employee to the carrier. The Zenefits system will not prompt for employer payment options if the employee is eligible for carrier-administered COBRA.
For more information, see: Handling Payments for Federal and State COBRA
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