Are you trying to be a nice guy but committing insurance fraud and jeopardizing the coverage for terminated or laid off employees?
Some employers are concerned about the availability of insurance for terminated employees especially if they have been with the company for a long time or they or a family member has a serious medical condition. The temptation is there to allow the
ex-employee to stay on the group medical plan until they can come back to work. I have actually seen ex-employees who were allowed to stay on the group plan for 6 months and even as long as a year not realizing the possible danger to the ex-employee and to the company.
Insurance carriers purchase reinsurance coverage for large claims and those carriers are not shy about requesting payroll records to prove an employee is qualified for the plan. If they deem the person was not eligible for coverage as an employee they have the right to recoup any claims paid and deny coverage.
There are options for those employees who cannot afford their cobra premium. If you want to help, you can pay the premium but other options are the state, hospitals, doctor’s offices, pharmacy companies.
Helping people have access to affordable health care is important to me, it is one of the reasons I find so much satisfaction in working in this field.