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COBRA NEWS

November, 2009

Health Care Reform and COBRA.

Below is an excerpt from H.B.3962, which if passed, would allow COBRA continuants to extend their COBRA coverage until they enroll in other group health coverage, or become eligible for the Health Insurance Exchange, which would begin in 2013. 

 

 

In the case of any individual who is, under a COBRA continuation coverage provision, covered under COBRA continuation coverage on or after the date of the enactment of this Act,  the required period of any such coverage which has not subsequently terminated under the terms of such provision for any reason other than the expiration of  a period of a specified number of months shall, not withstanding such provision and subject to sub section (b), extend to the earlier of the date on  which such individual becomes eligible for acceptable coverage or the date on which such individual be comes eligible for health insurance coverage through  the Health Insurance Exchange (or a State-based Health Insurance Exchange operating in a State or  group of States).

 

Download the entire section HERE

 

 

 

COBRA Subsidy Q&A  Click Here

March, 2009

Department of Labor Guidance

The DOL clarified that the Second Chance Notice for those individuals that may be eligible for the Act’s COBRA subsidy due to an involuntary termination on or after September 1, 2008 and before the Act’s effective date must be given to all individuals who have had a qualifying event in that time period—not just those who have been involuntarily terminated.

They have also indicated that they are currently working on a process and a form to allow those individuals who have been notified by their group health plan that they are not eligible for the Act’s COBRA subsidy—for example, because they were not involuntarily terminated or they are not eligible for COBRA—to appeal that determination to the DOL.

The DOL has also stated that their review process is limited to those plans offering COBRA pursuant to ERISA. Individuals in other types of plans covered by the Act—government plans or plans subject to state continuation laws—will appeal to HHS.

 

February, 2009

American Economic Recovery and Reinvestment Act of 2009

The President signed the American Recovery and Reinvestment Act of 2009 on February 17, 2009.  The new law provdes a 65% subsidy of COBRA premiums for up to nine months to Assistance Eligible Individuals.

Listed below are several documents designed to help clients understand the new law.

Short Summary (PDF) 4 pages

Long Summary (PDF) 9 pages

Notice Chart (PDF)

This chart explains the new notice requirements.

Employer Checklist (PDF)

This document reviews the steps an employer should take to comply with the new law. 

Text of the law affecting COBRA (Word) 2 pages

HR.1 Text (Word) 6 pages

 

New COBRA Notices

Within 30 days of the enactment of the law, the Department of Labor will issue Model Notices. At that time, CobraAid will post the amended qualifying event notices to the members area of the website (LOGIN HERE). 

 

 

 

 

 

 

April 2008

Kelly Crotty contends that she was never provided with a proper COBRA notice.  Dakotacare, the administrator, agrued otherwise.  The 8th U.S. Distric Court of Appeals sided with Ms. Crotty in stating that while the administrator had procdures in place to provide COBRA notices (they utilized software developed by Travis Software), they could not prove that they followed their own procedures in this case.

Read the case (PDF)

Read the CobraAid Alert (PDF)

(summary of the Crotty case)

 

 

 

 
 

 
COBRA Court Cases

Gary Starr sued Metro Systems, Inc. for their failure to provide proper COBRA notices after his employment with Metro was terminated.  Although the plaintiff prevailed at trial, the court refused to award attorney's fees.  The 8th Circuit Court of Appeals reversed the decision.

Read the case (PDF)

 

 

COBRA Court Cases

Gross Misconduct

COBRA regulations permit an employer to deny COBRA benefits to an employee who has been terminated for gross misconductRead more...

Domestic Partners

The Defense of Marriage Act of 1996 clearly states that a spouse includes only a person of the opposite sex who is a husband or wife of the covered employee.

Read More...

Oral Delivery of COBRA Notice

The court ruled that an employer satisfied the requirements of COBRA by giving an employee oral notice of the right to continue group health coverage under COBRA.

Read More...

Plan Documents Must State 60 Day COBRA Election Period

Plan administrators should note that COBRA’s regulations require a minimum of a 60-day election period, but do not prohibit allowing a longer election period.  Employers should review plan documents to confirm that the 60-day election period is expressly stated.

Read More...

Retroactive Demand for COBRA Premium

The administrator of the employer’s health plan acted properly when it required a former employee to pay premiums retroactive to his termination.

Read More...

Improperly Worded COBRA Notice

A federal court ruled an employer was liable for sending an insufficient COBRA notification form.

Read More...

Statute of Limitations for COBRA Lawsuits

The Fourth Circuit upheld a lower court judgment that a Consolidated Omnibus Budget Reconciliation Act (COBRA) notification claim brought in West Virginia was barred by a one-year statute of limitations.

Read More...

Decline COBRA, Then Make A COBRA Payment

A former employee properly secured COBRA continuation coverage even though she paid the premium to a carrier whose contract with the plan sponsor was ending.

Read More...

 

 

 

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Employers:  Click Here

 

 

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