Thanks to the Affordable Care Act (ACA), the compliance spotlight has shifted away from COBRA. Some opinion pieces have even called for the death of COBRA. These opinions overlook many of COBRA’s key benefits. For example, COBRA allows participants to take advantage of dollars already spent to satisfy deductibles. Unlike Marketplace coverage, COBRA provides retroactive coverage - thus preventing a gap. COBRA also takes into account all of the members of the family (creating Qualified Beneficiaries), not just the employee.
The COBRA Blog
On April 1, 2015, the IRS published its most recent Employee Plans Newsletter. You can access the newsletter at http://www.irs.gov/Retirement-Plans/Employee-Plans-News.
A recent case illustration:
Leaves of absence can cause major COBRA headaches. In one recent case (Cole v. Trinity Health Corp., 774 F.3d 423, 8th Cir. Dec. 15, 2014), an employee exhausted all available short term disability leave and then applied for long term disability benefits (LTD). The LTD carrier reviewed her application for three months and ultimately denied LTD benefits.
Tags: COBRA leave of absence
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If you employ under 50 full-time employees and reimburse those employees for the cost of their individual health insurance, the IRS just cut you a (temporary) break. Just this week, the IRS issued guidance that wipes away potential penalties for 2014 and for the first six months of 2015.
Tags: COBRA during divorce
COBRA CONUNDRUMS is reprinted from the September 2014 issue of Health Insurance Underwriter Magazine featuring our very own Robert Meyers.
It happens every year. You survive another busy holiday season, celebrate another New Year’s Eve, and embark on another year with renewed goals and a fresh outlook.
It’s time again to bid farewell to another year and sing another chorus of Auld Lang Syne. And after the whirlwind of PPACA challenges in 2014, many employers are probably happy to move on.