Medcom 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...

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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...

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