COBRA Compliance Checklist

Administering COBRA and Premium Collection — it's much more than just telling employees or dependents they can stay on your health plan, but it doesn't have to transform your entire workday into a wrestling match with COBRA paperwork either.

To get a better idea of your COBRA state of affairs, use the following checklist to see how well you meet the stringent IRS and DOL Regulations ... Or where you'll be making costly COBRA errors.

COBRA Compliance Requirements Under TAMRA

(Technical and Miscellaneous Revenue Act)

Proof of COBRA training
Written COBRA procedures (manual with instructions)
Documentation of program design (when first subject to COBRA) and program updates (through present)
Documentation of program monitoring

To pass the TAMRA portion of an IRS audit all four check marks are necessary

COBRA Notifications

General Notification (Overall mailing required when first subject to COBRA, remailed in 1990 if applicable, and a continuous mailing to all new insurance enrollees)
Notice from Qualified Beneficiary of events reported to employer (divorce/legal separation or dependent child ceasing to be a dependent)
Qualifying Event Election Notification
Notice of Unavailability
Notice from Qualified Beneficiary of extensions reported to the employer (secondary events and disability)
Extension Notification (secondary events and disability)
Conversion Notification (required if your group health plan has a conversion option)
Premium Billing Notice
Open Enrollment Notice
Notice of Early Termination
Notice of Insignificant Premium Underpayment
Notice of Plan Changes (open enrollment)
Expiration Notice (recommended - not a specific requirement)
Disclosure to health care provider
Disclosure to health care provider 

Fourteen check marks indicate a complete COBRA program.
(New DOL Final Notice Regulations issued May 26, 2004, require updating of all notification language.)

Accepting Elections and Premiums

Premium billing procedures (optional - not a requirement)
Insignificant premium underpayment procedure
Complete and accurate disclosure to health care providers
Cancellation procedures (voluntary and involuntary)
Verification of correct election

Five check marks indicate proper compliance.

Documentation Systems

Documentation of each notice sent
Documentation of COBRA dates (29 dates possible per beneficiary)
Documentation of notification language updates (1986 to present)
Documentation of procedural updates (1986 to present)
Documentation of events reported to the employer/plan administrator for divorce/dependent events and disabilities
Documentation of all oral and written communications with Qualified Beneficiaries

Six check marks may be necessary to PROVE compliance if challenged.

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