Blog

COBRA: Are You Compliant?

COBRA: Are You Compliant?

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...

Read More
IRS Notice 2021-31

IRS Notice 2021-31

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...

Read More
Part 2: Your Questions about COBRA and The Outbreak Period

Part 2: Your Questions about COBRA and The Outbreak Period

On Tuesday’s ARPA & The Outbreak Period webinar, our Senior Lead Counsel, Michelle Barki continued answering your questions on dependent care, notices, subsidies, and more. We have outlined the questions and answers from this webinar for you below in case you missed it.

Dependent Care Questions & Answers

If I have a DCA plan that runs on a plan year and renewed 8/1/2020, can they allow their employees to increase their current elections 1/1/2021?

Yes, the DCAP Rule says they can go back to 1/1/21, and when the IRS looks at DCAP, they are...

Read More
Part 1: Your Questions about COBRA and The Outbreak Period

Part 1: Your Questions about COBRA and The Outbreak Period

Over the past few weeks, we have received many questions regarding the ongoing Outbreak Period and the newly signed American Rescue Plan Act. Our senior Legal Counsel, Michelle Barki, took the time to answer them all for you. This morning during our webinar, we answered general questions, subsidy-related questions, and voluntary versus involuntary termination questions. Next Tuesday, for Part 2, we will discuss Depended Care and Notices. In case you missed it, here are the questions and answers:

General Questions and Answers

Will COBRA members be able to have a coverage gap?

There is a special...

Read More