http://www.infinisource.net/Rss/COBRA.ashx COBRA News & Review 10 An employer inserted the wrong termination date on the COBRA Election Notice and paid an expensive price for doing so. The related lawsuit, Olick v. Knights of Columbus, was finally resolved in bankruptcy court with a penalty of $13,200 against the employer. ../Infinisource/Article.aspx?articleId=b7b3d4ee-53d4-447b-9c72-c3fb673d206b Tuesday, March 02, 2010 Late on March 2, 2010, the President signed into law the Temporary Extension Act of 2010 (HR 4691). Among other provisions, this law extends the COBRA subsidy eligibility period under ARRA to March 31, 2010. ../Infinisource/Article.aspx?articleId=dd257f91-6eb4-482e-9e62-d62bda30e888 Tuesday, March 02, 2010 The DOL and IRS recently issued more clarification on the ARRA subsidy program and the changes brought on by the Department of Defense Authorization Act, 2010 (2010 DOD Act). ../Infinisource/Article.aspx?articleId=63bdc363-ceb4-4805-aa04-f5547ce87040 Wednesday, February 03, 2010 Leaves of absence are often difficult to manage, and errors are easy to make. This can be an expensive lesson, as one employer learned recently. ../Infinisource/Article.aspx?articleId=9b143ed2-c477-4575-b83c-0c3d3f75cdf9 Wednesday, February 03, 2010 On Saturday, December 19, 2009, the President signed HR 3326 (the Department of Defense Appropriations Act of 2010, [DoDAA]), which extends the ARRA subsidy. This information became public knowledge on Monday, December 21, 2009. ../Infinisource/Article.aspx?articleId=bd9807f0-c339-40e3-9bfc-49732a513c48 Wednesday, January 06, 2010 In a Title VII retaliation lawsuit, the employer faced an increasingly common side complaint: the ex-employee never received a COBRA Election Notice. ../Infinisource/Article.aspx?articleId=eef501df-a253-4032-bc12-4c69155b01b6 Wednesday, January 06, 2010 On Saturday, December 19, 2009, the President signed HR 3326 (the Department of Defense Appropriations Act of 2010, DoDAA), which extends the ARRA subsidy. This information became public knowledge on Monday, December 21, 2009. ../Infinisource/Article.aspx?articleId=5c4d2cac-6eda-4644-9643-1462ca6f799d Wednesday, December 23, 2009 Since February 17, 2009, when the American Recovery and Reinvestment Act of 2009 (ARRA) became law, Infinisource, Inc. has continued to keep you abreast of the latest changes and developments related to COBRA. ../Infinisource/Article.aspx?articleId=9a1795ef-e12a-4338-82ff-1206e8778b78 Wednesday, December 02, 2009 The Department of Labor (DOL) does not lose many COBRA lawsuits. It continued its streak of success recently in a lawsuit related to a denial of a subsidy under the American Recovery and Reinvestment Act of 2009 (ARRA). This was the first recorded case involving ARRA. ../Infinisource/Article.aspx?articleId=be4a8781-37f8-4c0f-b52d-355c0830e3ab Wednesday, December 02, 2009 One of the intricacies of the American Recovery and Reinvestment Act of 2009 (ARRA) is that Qualified Beneficiaries receive an immediate 65 percent discount on COBRA coverage with an intermediate step required before the federal government pays for the subsidy. ../Infinisource/Article.aspx?articleId=689a3ae4-62c3-4426-8b58-4dc0f3eeb19b Wednesday, December 02, 2009 After months of speculation and murmurings in Washington, D.C., two bills were introduced in the House in late October to expand the COBRA subsidy program created by the American Recovery and Reinvestment Act of 2009 (ARRA). ../Infinisource/Article.aspx?articleId=159613b6-2c93-4f6f-9667-5f35710fc250 Wednesday, November 04, 2009 While not all divorces become as difficult as the couple battling it out in the movie The War of the Roses, some give new meaning to the word difficult or never-ending. Some divorces head to court to battle over items such as assets, custody or even who will be paying for the health care coverage after the divorce. When the dust finally settles is when an unsuspecting employer may be brought into the mix when health care coverage ends or COBRA is requested. ../Infinisource/Article.aspx?articleId=fac50f62-64cf-4075-9186-2e17dc75f39d Wednesday, November 04, 2009 When the American Recovery and Reinvestment Act of 2009 (ARRA) became law in February, a stated purpose was to “assist those most impacted by the recession.” At the time, the unemployment rate was 8.9 percent. In September, this rate was 9.5 percent. As a result, leaders in Washington, D.C. are strongly considering the extension of the COBRA subsidy program. ../Infinisource/Article.aspx?articleId=50516b16-98c6-4246-a888-ffad14e1dbc2 Wednesday, October 07, 2009 The check was in the mail. The problem – from a COBRA perspective – is that the envelope had a postmark date that was one day after the 30-day payment grace period expired. ../Infinisource/Article.aspx?articleId=3939b890-de88-4a82-8c7f-d316fee595e3 Wednesday, October 07, 2009 As unemployment continues to increase, employers may want to become more familiar with a 2002 law that affects COBRA administration: the Trade Adjustment Assistance Reform Act (Trade Act). In recent months, the Department of Labor (DOL) has issued several announcements about workers becoming eligible for Trade Adjustment Assistance (TAA). ../Infinisource/Article.aspx?articleId=eefd688c-5c33-4c88-97dd-284d082823f1 Wednesday, August 05, 2009 The American Recovery and Reinvestment Act of 2009 (ARRA) has triggered a series of state laws designed to match several ARRA provisions. One of the more recent states to respond was Texas. ../Infinisource/Article.aspx?articleId=cea8c3de-1474-4805-bd36-2851bd4e8c0c Sunday, July 05, 2009 The two main COBRA notices are the General Notice (sent when participation begins) and the Election Notice (sent when a Qualifying Event occurs). In most cases, courts will focus primarily on failures related to the Election Notice. However, as one employer learned, the General Notice is important also. ../Infinisource/Article.aspx?articleId=befec374-a522-4528-9434-44795b77da15 Sunday, July 05, 2009 The IRS recently posted additional information on how to administer the complexities of the COBRA subsidy that was created by the American Recovery and Reinvestment Act of 2009 (ARRA). ../Infinisource/Article.aspx?articleId=2d06b36c-c6c8-4cfe-86e7-5a9e6eb0d8fc Sunday, July 05, 2009 What is a Qualifying Event? One might think that after more than two decades of COBRA, this question would be easily answered, but that was not the case in a recent dispute between a former employee and his employer, Lake and Mountain Properties (LMP). ../Infinisource/Article.aspx?articleId=430fa20b-c39e-4de9-8c46-e5a9af9eaecf Sunday, July 05, 2009 A common add-on complaint for employees who sue their former employers is that they never received the required COBRA Election Notice. The common defense for employers – as illustrated in a recent case – is that you do not have to prove receipt. ../Infinisource/Article.aspx?articleId=f54fd246-4560-4e77-95ed-3c1f3e054ea7 Wednesday, June 03, 2009 In mid-May, the Department of Labor (DOL) issued the application and instructions that Qualified Beneficiaries use to have the DOL review employer denials for the subsidy available under the American Recovery and Reinvestment Act (ARRA). ../Infinisource/Article.aspx?articleId=2748f47c-c14d-46ca-90a0-2c35ddd2d3cc Wednesday, June 03, 2009 Even after issuing Model Notice Regulations and Notice 2009-27, respectively, the Department of Labor and the IRS continue to provide additional guidance on COBRA changes due to the American Recovery and Reinvestment Act of 2009 (ARRA). State governments have sprung into action as well. ../Infinisource/Article.aspx?articleId=2e7128c8-329e-4a1b-9375-51aec37c5698 Wednesday, May 06, 2009 George Bernard Shaw once said, “Better never than late” but with COBRA continuation notices that is not the case. One employer, Commerce Lexington, Inc. (Commerce), discovered sending a COBRA Qualifying Event notice, even though it was late, was better than not at all. In the end, it didn’t keep them from paying penalties for the late notice, but there would have been much larger fees against them had they not sent the notice at all. ../Infinisource/Article.aspx?articleId=06bbb1ab-a204-43d4-8a85-659b9c5372d2 Wednesday, May 06, 2009 The Department of Labor (DOL) published model COBRA notices exactly 30 days after the American Recovery and Reinvestment Act of 2009 (ARRA) was passed on February 17, 2009. In addition, the IRS and DOL have issued more guidance on their respective websites. ../Infinisource/Article.aspx?articleId=bbc7c13f-05ad-4dc5-8079-0e33915573c7 Sunday, April 05, 2009 The IRS recently posted Notice 2009-27, which clarifies a variety of issues related to COBRA and the American Recovery and Reinvestment Act (ARRA). ../Infinisource/Article.aspx?articleId=d76b8237-b102-4fec-8be3-9ac573953b0a Sunday, April 05, 2009 On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 (ARRA), ushering in changes to COBRA administration and transportation plan limits, among other things. The law, in its final form, exceeds 1,000 pages in length. ../Infinisource/Article.aspx?articleId=e27e7bab-1e36-4175-932a-8bfe65497e13 Monday, February 16, 2009 Employers who offer retiree health coverage may forget about COBRA requirements. The rationale is sometimes retirees are continuing their health coverage, sometimes under better terms, so there is no qualifying event under COBRA. That is not always the case, as a Virginia employer recently learned. ../Infinisource/Article.aspx?articleId=74d32a1c-f186-412a-b1f0-88c9ccafd64e Thursday, February 05, 2009 For the first time since 2004, major changes to COBRA administration are likely, perhaps within the next 30 days. Currently, the House (H.R. 598) and Senate (S. 29) are considering proposals that would subsidize coverage and expand the amount of coverage available for older and long-tenured employees. ../Infinisource/Article.aspx?articleId=f4bd14de-3050-4b41-8064-f14ef7941b7e Friday, January 30, 2009 A maze is a complex puzzle in the form of intricate passages through which the solver must find a route. Employers have found that sometimes COBRA can be a maze, with one particularly complex and difficult branch consisting of worker’s compensation and leaves of absence. ../Infinisource/Article.aspx?articleId=c3cf9d77-d894-4225-8a51-9cb38d75e9a7 Thursday, January 15, 2009 This much is clear about Michelle’s Law, which was enacted in October 2008: the new federal law requires employer health plans to continue coverage for employees’ dependent children who are college students when they take a certified medically necessary leave of absence. The law allows up to one year of coverage during this leave. The law takes effect for plan years beginning on or after October 9, 2009. ../Infinisource/Article.aspx?articleId=21b34de0-d92c-4d50-9212-00c77a58ff91 Thursday, November 06, 2008 COBRA is a deadline-driven law. One exception to applicable deadlines that courts have carved out over the years is when qualified beneficiaries have a period of mental or physical incapacity. An employer recently learned that truth the hard way. ../Infinisource/Article.aspx?articleId=be776950-b9fc-4d8c-b9ff-391ea4c4a3b8 Tuesday, October 14, 2008 An employer has many COBRA disclosure requirements to many parties, including qualified beneficiaries and plan administrators. One party that is often overlooked is the health care provider. An employer recently learned the hard way that health care provider disclosures are very important. ../Infinisource/Article.aspx?articleId=3b8898d4-e403-4b12-97a2-edd03c18b8cc Tuesday, September 16, 2008 The Employer's Council on Flexible Compensation (ECFC) has awarded Infinisource employee Marisha Taylor, Broker Premium Only Plan (POP) Specialist, the designation of Certified in Flexible Compensation Instructor (CFCI). ../Infinisource/Article.aspx?articleId=18992a54-a141-46d5-8c09-e5a77f37a862 Tuesday, August 12, 2008 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. ../Infinisource/Article.aspx?articleId=134341fa-c995-4f90-ac3c-523d211c7351 Tuesday, June 10, 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. ../Infinisource/Article.aspx?articleId=c6560fbb-ee6b-40de-becb-354a106076e3 Tuesday, April 15, 2008 ../Infinisource/Article.aspx?articleId=1a1c6e42-2f68-4649-a8c3-3175562564e6 Monday, February 11, 2008 ../Infinisource/Article.aspx?articleId=f59bde58-64da-446b-a891-9d405a54acc0 Monday, January 07, 2008 ../Infinisource/Article.aspx?articleId=1052898e-38b3-4ff0-9251-e67a729f2d57 Monday, December 10, 2007 ../Infinisource/Article.aspx?articleId=52bdf355-1c23-4976-a5da-034e3fcadafd Monday, December 10, 2007 ../Infinisource/Article.aspx?articleId=ab902437-7f99-4e25-a248-5f48d8fe5bfe Monday, December 10, 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. ../Infinisource/Article.aspx?articleId=13bf3804-b40b-4d0e-8dbc-f3c493cdbe1c Monday, November 12, 2007 In today's highly competitive and global marketplace, organizations must continue to find ways to work smarter, causing many to make outsourcing a part of their strategic plans. ../Infinisource/Article.aspx?articleId=fdbbec12-ede7-4f74-bf1b-4d2b03515092 Monday, October 08, 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. ../Infinisource/Article.aspx?articleId=3913531c-1245-4669-83a0-7ac30dd8f422 Monday, September 10, 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". ../Infinisource/Article.aspx?articleId=9f9d2f91-8272-4aba-a8e3-2bfaa1aec41b Monday, September 10, 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. ../Infinisource/Article.aspx?articleId=d9824b0e-9337-4b13-aae7-b9a4f3ddee53 Monday, September 10, 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. ../Infinisource/Article.aspx?articleId=8107ab83-1f68-450a-a10a-6521913c1d12 Monday, August 13, 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. ../Infinisource/Article.aspx?articleId=07a3d986-f688-48e0-9586-04bde37a847a Monday, July 09, 2007 In Texas, everything is big, including the State Continuation Health Insurance Law. It applies potentially to millions of Texans and thousands of employers. However, minimal guidance exists as to what employers’ obligations are under Texas law and what obligations are preempted by COBRA. ../Infinisource/Article.aspx?articleId=19c01a3c-9427-4bed-b418-27cdf88e0a01 Monday, May 07, 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. ../Infinisource/Article.aspx?articleId=47578a44-e38a-438f-b326-9a2042e04e6a Monday, May 07, 2007 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. ../Infinisource/Article.aspx?articleId=39306743-87ac-4e76-b583-02a64985488d Thursday, April 12, 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. ../Infinisource/Article.aspx?articleId=a00c3e4c-e76c-4cff-b708-e99621053633 Thursday, April 12, 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. ../Infinisource/Article.aspx?articleId=4cb291d0-af73-403a-95b6-c133d52f7b4d Tuesday, January 09, 2007 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.” ../Infinisource/Article.aspx?articleId=94714039-6031-459a-a008-78b75f88e814 Tuesday, October 10, 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. ../Infinisource/Article.aspx?articleId=42b31aa0-704c-492d-b6da-72a64ca6cd47 Friday, August 04, 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. ../Infinisource/Article.aspx?articleId=5bb3fc14-216b-47e8-a223-34f8c8cd63d7 Wednesday, July 12, 2006