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USU clarifies insurance benefits for ex-employees

USU clarifies insurance benefits for ex-employees



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LOGAN, Utah (AP) -- About 120 former Utah State University employees who took early retirement or buyouts earlier this year are learning that they may not be eligible for COBRA coverage once health insurance benefits offered by the school run out.

The school offered to continue covering those who chose to retire for between six months and six years to encourage voluntary separations.

But it didn't tell the workers that their time of eligibility for COBRA insurance benefits would run concurrently with coverage offered by the school.

The outcome is that some former employees won't be eligible for COBRA when their school coverage expires.

The university has sent letters to former employees about the terms. A USU human resources official says the school didn't alter the terms but simply hadn't explicitly told employees about them.

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Information from: The Herald Journal

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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