Yes. You will let the coverage run through the time period that the premiums have been paid and then you may terminate the coverage. Your employee has 60 days from the termination of coverage if that date is later than 60 days from your notice.
Read this FAQ:
We terminated an employee, and his last day of work was mid-month. He was given a COBRA election form and other COBRA information at that time. Our group health plan requires us to carry him until the end of the month. We know that an employee has 60 days to elect COBRA coverage, but when does that period begin running — on the employee’s last day of work or the last day of the month when he actually loses coverage? This is a common scenario, as many group health plans require that terminated employees be carried until the end of the month. The qualifying event for COBRA purposes is the employee’s loss of employment. However, the election period does not end until 60 days after the employer sends the election form to the employee or until 60 days after the loss of coverage, whichever is later. In this case, the 60-day election period starts to run on the last day of the month.
Also, here is a link to FAQs about COBRA at dol.gov. https://www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/resource-center/faqs/cobra-continuation-health-coverage-consumer.pdf
Hope this helps. Have a great weekend!
March 2018
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