A client asked if they could charge a former employee the admin fee plus claims cost for a self-insured dental plan under COBRA. My immediate thoughts were no, since this should be treated like any other plan with illustrative premiums. They told me another company they know did just that. Am I missing something here?
You are not missing anything. Establishing COBRA premiums for a self-funded dental plan is the same as a self-funded medical plan. You determine the aggregate annual cost of the plan, and divide the per employee amount by 12 to come up with the monthly COBRA premium.