When an employee terminates mid-month coverage will generally last through the end of the month. For plans that were set up with a non-traditional effective date, a plan that was originally effective on the 15th of the month for example, coverage will last through the end of that billing period.
The last date of employment is important when the insurance carrier or broker is assisting in processing a termination. The last date of employment will help to determine when the first date of no coverage is for the employee in question.
The date coverage ends for a terminated employee can vary carrier to carrier, we always recommend checking with your broker to make sure your plan follows the above guidelines.