http://www.infinisource.net/Rss/COBRA.ashx COBRA News & Review 10 A Nevada employer thought it had its benefit responsibilities all taken care of. It hired a third party administrator (TPA) to manage its health administration, including communication of eligibility information to the carrier. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20080610-9.aspx 10 Jun 2008 The importance of the last known address became a matter of court record when Steven Hill (Hill) sued his former employer, Zimmer, Inc. (Zimmer), for failure to send his COBRA notice to his current address. He also sued for claims of retaliation for taking FMLA. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20080415-1.aspx 15 Apr 2008 We have heard it before: two wrongs do not make a right. In a recent COBRA case, an employer's multiple mistakes did not result in an employee's victorious day in court. The reason was simple: the successor employer took several steps to right the wrongs. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20080211-3.aspx 11 Feb 2008 There was something rotten in the state of Schaumburg Castle. That is where James Killis, Jr. worked as a knight for a Medieval Times dinner and show in suburban Chicago. Maybe it was his many workers' compensation claims and his employer's crack-down on work-related injuries. Maybe the Merlin-like character put something strange in the brew. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20080107-2.aspx 7 Jan 2008 Open enrollment is a time of change, a time of options and a time of required actions. This applies not only participants who are active employees, but also to COBRA qualified beneficiaries, a lesson made all too clear in a recent case. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20071210-1.aspx 10 Dec 2007 'Tis the season! This time of year is a busy one for agents, brokers and benefit professionals. It’s not just the holiday season that is the reason for the hustle and bustle; it’s also open enrollment season. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20071210-2.aspx 10 Dec 2007 In today's world of business, much emphasis has been placed on price over service. Add to that the ever-increasing pressure for health plans to control costs and there is a temptation to view benefit outsourcing through a single lens: price. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20071210-7.aspx 10 Dec 2007 Most benefits and insurance professionals familiar with COBRA administration clearly know that church plans are exempted from COBRA’s requirements. What is less clear is when this exception actually applies. A recent district court case shed some light. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20071112-1.aspx 12 Nov 2007 Employers who ignore their basic responsibilities to send election notices and offer COBRA when required do so at their peril. A Florida employer recently learned that lesson the expensive way. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20070910-2.aspx 10 Sep 2007 As the summer gives way to fall, many will focus their attention on a three-word phrase that is commonly spoken: back to school. This is a good time for benefits and insurance professionals to focus their attention on another three-word phrase: plan eligibility audit. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20070910-4.aspx 10 Sep 2007 About one out of every eight Americans lives in California. The Golden State has a law big enough to match California's large workforce: Cal-COBRA. Cal-COBRA has been around as long as federal COBRA and was amended to cover a higher number of qualified beneficiaries. The law is complex with many players including carriers, employers, brokers and participants. There are two separate codes that address Cal-COBRA: the Insurance Code and Health & Safety Code. There are two different agencies that enforce Cal-COBRA: the Department of Insurance and the Department of Managed Health Care. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20070910-9.aspx 10 Sep 2007 When the employee who handles COBRA administration quits, an employer needs to make sure its COBRA program does not quit also. A Puerto Rico employer was recently reminded of that COBRA truth in court. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20070813-2.aspx 13 Aug 2007 Since the evolution of the Internet and the speed of e-mails, the process of receiving mail from a postal worker at your home is considered "snail mail." Most individuals receive the dreaded bills or junk mail via snail mail. However, there is one important letter sent by snail mail that should not be overlooked, a COBRA Qualifying Event Election Notice. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20070709-3.aspx 9 Jul 2007 In some parts of the southwest U.S., a commonly heard phrase is: "Don't worry about the mule; just load the wagon." The translation: do your part and don't worry about someone else's part. A similar philosophy governs the interplay between federal COBRA law and state insurance law. Each has a role to play. A recent case expanded on where the line is between watching the mule and loading the wagon. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20070507-1.aspx 7 May 2007 The key to COBRA compliance has existed for almost two decades. Locating this key can be a challenge, almost akin to following a map to buried treasure. To find this COBRA secret, you must look in Senate Report 100-445. The key is in a single paragraph on page 483. This report was in support of the Technical and Miscellaneous Revenue Act of 1988 (TAMRA), which provided the framework for COBRA excise taxes. Such taxes can reach as high as $100 per day, per violation. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20070412-2.aspx 12 Apr 2007 If one spends any amount of time with children, one quickly understands that the standard of what is gross varies widely. The same holds true in COBRA litigation with the undefined term gross misconduct. Neither the law nor the regulations provide guidance, and thus what constitutes gross misconduct is left to each court to decide. If gross misconduct exists, employers need not offer COBRA. In most cases, that decision favors the former employee. http://www.infinisource.net/Infinisource/News_Review_Articles/news_review20070412-4.aspx 12 Apr 2007 Isn't it funny how time slips away? Deadlines are at every turn, from the workplace to home life, but are often unmet. Allowing COBRA time frames to slip away can be a recipe for disaster with expensive ramifications. COBRA administrators like Infinisource can ease your worries by tracking and enforcing the time frames and reducing your plan’s claim costs. http://www.infinisource.net/news/stories/new_review20070109-8.asp 9 Jan 2007 Some employers want to help new hires with the cost of COBRA coverage when the employer’s health plan has a waiting period. While the intentions are good, the result may not be, if employers fail to take certain precautions as outlined in a recent IRS information letter http://www.infinisource.net/news/stories/new_review20061211-3.asp 11 Dec 2006 Many people are making a list and checking it twice, for very different reasons than the holiday season. Instead of shopping for two turtle doves and a partridge in a pear tree, this season is about ensuring that benefit plans are ready for 2007. Here are some helpful reminders from Infinisource: http://www.infinisource.net/news/stories/new_review20061211-1.asp 11 Dec 2006 It seems, these days that a computer application exists to do almost everything – including COBRA administration. Entrusting your COBRA compliance to a computer program, though, is not foolproof, as one Ohio employer recently learned in court. http://www.infinisource.net/news/stories/new_review20061211-5.asp 11 Dec 2006 When a union goes on strike, all employer actions are under a legal microscope. One employer recently learned that lesson the hard way in the area of continuing health benefits. Four days after its union employees went on strike, Marathon Petroleum, the employer, sent a letter to striking employees that it would stop paying the employer portion of health plan premiums. Marathon later told employees that failure to pay the full cost of coverage by a certain date would mean termination of coverage. The icing on the cake was this: Marathon did not consider the loss of such coverage a COBRA qualifying event. Instead, it was cancellation of coverage due to adjusted premiums. http://www.infinisource.net/news/stories/new_review20061211-5.asp 10 Oct 2006 In a recent Private Letter Ruling (PLR) on a narrow issue relating to the Health Coverage Tax Credit (HCTC), employer bankruptcy, and renegotiated union benefit coverage, IRS provided additional guidance on the use of COBRA coverage waivers. http://www.infinisource.net/news/stories/new_review20060804-3.asp 4 Aug 2006 Failing to offer COBRA coverage. Falsely notifying the insurance carrier about COBRA eligibility. Reneging on a promise to a state insurance division after its investigation. Normally, it is three strikes and you’re out, but an employer recently tried to escape liability for these alleged actions because of one of COBRA's gray areas: the statute of limitations. http://www.infinisource.net/news/stories/new_review20060712-1.asp 14 Jul 2006 To better serve our New Jersey clients, Infinisource, Inc. is pleased to announce we are assisting our clients with the required Coverage Extension Notice of Medical Coverage Extension for individuals who lost coverage because they “aged out” of their plans. As previously communicated, on January 12, 2006, the state of New Jersey enacted Assembly Bill 3759. This law requires health insurers in New Jersey to either extend dependent coverage until age 30 or alternatively permit dependents that lose medical coverage before age 30 to elect to continue their benefits until age 30. From May 12, 2006 to May 11, 2007, there is a special open enrollment window for dependents that previously aged out under their policy. http://www.infinisource.net/news/stories/new_review20060712-4.asp 14 Jul 2006 The increased use of independent contractors also brings an increased risk of benefit-related lawsuits. An employer recently prevailed in such a dispute through careful plan design, in light of the famous Vizcaino v. Microsoft case decided several years ago. http://www.infinisource.net/news/stories/new_review20060712-6.asp 14 Jul 2006 From an employer’s perspective, April 7, 2006, marked a not-so-happy 20 th birthday for COBRA. No cause for celebration, no gifts, no cake or ice cream either. It is well established that COBRA participants cost plans considerably more than their nonCOBRA counterparts. And yet, after two decades of educating more than 250,000 agents, employers and administrators, we continue to see recurring mistakes that cost them even more. http://www.infinisource.net/news/stories/new_review20060411.asp 11 Apr 2006 A recent COBRA case in Georgia had some interesting elements. Allegations of Gross Misconduct at a yacht club. A personality conflict with the “Commodore”. Five officers whose perks arguably made them employees. And difficulty in counting to the number 20. http://www.infinisource.net/news/stories/new_review20060516-4.asp 16 May 2006 The start of a new year brings many activities including completing the final touches on Open Enrollment (if the plan year is a calendar year). There’s no time like the present to make sure Qualified Beneficiaries (QBs) are being charged the accurate amount for COBRA whether clients, agents, or an outside provider such as Infinisource is sending out monthly requests for payments. http://www.infinisource.net/news/stories/newsroom20060111-2.asp 11 Jan 2006