EBIA Weekly Archives - COBRA

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  1. IRS Issues Additional Q&As on COBRA Premium Assistance Subsidy
    From the May 07, 2009 EBIA Weekly
    The IRS has posted on its website additional questions and answers (Q&As) on the COBRA premium subsidy enacted pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). ARRA created rights to COBRA premium assistance for employees ...
    ["COBRA: Answers for Employers" (May 1, 2009)]
  2. DOL and CMS Request Comments on Draft Application for Expedited Review of COBRA Subsidy Denials
    From the May 07, 2009 EBIA Weekly
    DOL and CMS have released for public comment the applications to be used by individuals to request that these agencies review a denial of COBRA premium assistance. The applications have been submitted to the federal Office of Management and Budget ...
    [Emergency Clearance: Public Information Collection Requirements Submitted to the Office of Management and Budget (OMB), 74 Fed. Reg. 20483 and Submission for OMB Emergency Review: Comment Request, 74 Fed. Reg. 20503 (May 4, 2009)]
  3. Which of our terminated employees are entitled to the COBRA premium subsidy?
    From the April 30, 2009 EBIA Weekly
    QUESTION: I understand that in order to be eligible for the new COBRA premium subsidy, the employee must be involuntarily terminated. What is considered an involuntary termination of employment? ANSWER: The 65% COBRA premium subsidy created by the American Recovery ...
  4. COBRA Not Required Following Sham Termination of Employment
    From the April 30, 2009 EBIA Weekly
    The employee in this case worked for an employer that received payroll and human resources services from an employee leasing organization. The employee participated in a health plan sponsored by the leasing organization, premiums for which were deducted from his ...
    [Powell v. Strategic Outsourcing Inc., 2009 WL 746253 (S.D. Tex. 2009)]
  5. No Penalties for Employer That Did Not Provide COBRA Election Notice for Life Insurance Plan
    From the April 23, 2009 EBIA Weekly
    After a life insurance plan participant died, his beneficiaries sued his employer, seeking death benefits under the plan and statutory penalties for failure to provide a COBRA election notice. The beneficiaries argued that the employer violated COBRA when it failed ...
    [Noel v. Laclede Gas Co., 2009 WL 890118 (E.D. Mo. 2009)]
  6. IRS Updates Its Webpage on the Health Coverage Tax Credit for Changes Made by ARRA
    From the April 23, 2009 EBIA Weekly
    As background, the Trade Act of 2002 created a health coverage tax credit (HCTC) that helped reduce the out-of-pocket cost of COBRA coverage for a limited group of individuals (generally including eligible individuals under the Trade Adjustment Assistance (...
    [IRS Webpage: HCTC Latest News, Overview and Background (Apr. 21, 2009)]
  7. COBRA Notice Stopped Accrual of Penalties, Even Though Employer Later Issued Revised Notice
    From the April 16, 2009 EBIA Weekly
    The employee in this case was terminated and, during her exit interview, was told that she would be eligible for COBRA benefits, but was not provided an election notice. More than two months later, the employer, who was also the ...
    [Fiveash v. Commerce Lexington Inc., 2009 WL 331387 (E.D. Ky. 2009)]
  8. IRS Notice on COBRA Premium Subsidy Addresses Involuntary Terminations and Many Open Issues
    From the April 02, 2009 EBIA Weekly
    The IRS has released Notice 2009-27, addressing a number of issues in Q&A format that have arisen with respect to the premium subsidy for COBRA under the American Recovery and Reinvestment Act of 2009 (ARRA), including what ...
    [IRS Notice 2009-27 (March 31, 2009)]
  9. Do we have to allow mid-year enrollment of an employee's spouse in our plan even though her COBRA coverage has not been exhausted?
    From the April 02, 2009 EBIA Weekly
    QUESTION: The spouse of one of our employees received a generous severance package under which her former employer has been paying her COBRA premiums for the past nine months. Her former employer’s contributions are now ending (even though ...
  10. CMS Updates Its COBRA Webpage for Premium Assistance Provisions
    From the April 02, 2009 EBIA Weekly
    CMS has updated its “COBRA Continuation of Coverage” webpage, to add information about COBRA premium assistance enacted pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). ARRA created rights to COBRA premium assistance for employees who ...
    [HHS-CMS Webpage: COBRA Continuation of Coverage]

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