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The U.S. Department of Labor’s Pension and Welfare Benefits Administration has issued a fact sheet to help employees preserve their health care coverage after layoffs or a reduction in hours. It outlines the options available to employees, such as COBRA continuation coverage or special enrollment in another group plan.
Not giving workers proper notice of their COBRA rights can have potentially expensive consequences for employers—including having to pay an employee’s uncovered medical bills, attorneys’ fees and penalties. But what happens if you do everything right—and yet the employee never receives the COBRA notice you sent out? A federal appeals court decision looks at this […]
Under federal law, employers with 20 or more employees must offer continued health plan benefits, at the workers’ expense, for a period of time after employment ends. And in California, employers with fewer than 20 employees must also do so. However, under both federal and state regulations, you don’t have to offer this COBRA coverage […]
Meeting COBRA election notice requirements can be tricky – and even a minor oversight can potentially be expensive. A recent opinion letter from the Department of Labor clarifies the process for providing COBRA election notices to households with more than one qualified beneficiary. If several beneficiaries live at the same address, you can send their […]
Last March we reported on changes coming to the COBRA rules. Here is a quick rundown on the highlights of the updated regulations that take effect January 1.
A federal court in Delaware has ruled that Hanover Foodsviolated federal law by refusing to offer COBRA benefits to a worker who was fired for leaving onion powder out of a batch of ravioli. The company claimed that Heather Lloynd tried to sabotage the ravioli because she was assigned to work with an employee she […]
After a 13-year wait, the Internal Revenue Service has just released its comprehensive regulations covering COBRA health benefits continuation coverage. The new regulations-which are a complex mix of final and so-called proposed rules-clarify several gray areas of the law but don’t change the basic COBRA mandates, including the detailed notice requirements. Even though the rules […]
The U.S. Supreme Court has ruled that you can’t deny COBRA continuation coverage to an eligible employee or dependent simply because the person-at the time COBRA coverage is elected-is also covered under another group health plan, such as one provided by a spouse’s employer.3 Note that despite this new ruling you can terminate COBRA benefits […]
Giving workers propernotice of their COBRA rights is a common concern for employers.And now a new decision-which highlights the potentially expensive consequences of mistakes-reinforces the need to proceed with caution.Here’s a look at the case and four compliance tips.
Employers with 20 or more employees who provide health benefits must notify terminated workers of their continuation rights under COBRA. But a new federal appeals court ruling has confirmed you’re required to separately notify the employee and the worker’s spouse of their COBRA rights.7 To protect yourself, Ina Potter, a partner with the San Francisco […]