Since 1986, many employers have had to comply with COBRA rules. COBRA law not only requires employers and plan administrators to allow continuation coverage, it requires that all beneficiaries are notified of their COBRA rights.

1. Since 1986, many employers have had to comply with COBRA rules.
COBRA law not only requires employers and plan administrators to
allow continuation coverage, it requires that all beneficiaries are
notified of their COBRA rights.
Unfortunately, the notice requirement is not as easy as you might think.
COBRA compliance is extensive as it entails many
required notices and tracking numerous time frames.
How many
COBRA notices
do you have?
Even though the DOL has issued a model qualifying
event election notice and general notice, employers
may not want to automatically use these.
The DOL cautions that the sample notices may not
fully protect an employer in a COBRA lawsuit or audit.
COBRA lawsuits, legislative changes, new IRS interpretations of COBRA
provisions, the outcome of COBRA audits, etc., require constant monitoring
and constant updating of notice language.
To avoid lawsuits, the language contained in the notice must be accurate,
up to date and clearly understandable.
The qualifying event election
notice has been the central issue
of hundreds of COBRA lawsuits.
Proper notification at the time of
the qualifying event is the most
important function of compliance.
The qualifying event election
notice informs each qualified
beneficiary that they have rights
to continue their group health
insurance coverage under COBRA.
Compliance is defined as “a state of being in accordance with established
guidelines, specifications or legislation.”
However, with the amount of notices, various time
frames and procedures required with a proper
COBRA compliance program, you can see it is more
than just telling ex-employees or dependents they can
stay on your health plan and it is anything but easy.
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