We can’t talk about COBRA compliance without really getting into what it means. COBRA stands for the Consolidated Omnibus Reconciliation Act of 1985. Now that’s a mouthful, which explains the abbreviation!
The federal law requires employers with 20+ employees to offer continuing healthcare coverage to their employees and dependents who would otherwise lose their health benefits due to a qualifying event, e.g., termination of employment, reduction of hours, divorce, etc. For more information on how COBRA works and to whom it applies, you can read about it on our COBRA Qualifying Event Quandary...
In February, President Biden further extended the National Emergency declaration, which is ongoing today. We are, however, beginning to see the light at the end of the tunnel as vaccinations increase. It’s been a long, tiresome road, and we wanted to recap on a few of the changes that came about due to the pandemic.
We put together a timeline of events describing how COVID has affected the employee benefits industry.
March 18, 2020: Families First Coronavirus Response Act
The FFCRA requires all employers with less than 500 employees and public employers,...
On May 18, 2021, the IRS issued Notice 2021-31. The notice provides guidance on tax breaks under the 2021 American Rescue Plan Act (ARPA) for continuation health coverage under COBRA.
We realize it’s a bit overwhelming, but our senior legal counsel, Michelle Barki, summarized the main points covered in the 41-page document. So don’t be scared; we are here to help!Notice 2021-31 Main Points:
1. Employers may require attestations to AEI status.Any proof of eligibility records should be kept.
2. Involuntary Termination, like ARRA, is broadly interpreted based on facts and...