COBRA Compliance Checklist

COBRA Compliance Checklist

Brent Heurter, Chief Solutions Officer

Are you outsourcing your COBRA Administration?  It’s been reported that 95% of all employers not outsourcing their COBRA administration are not in full compliance with COBRA.

Every company runs the risk of being audited by the IRS, the Department of Labor or being sued by ex-employees, their dependents and even an estranged spouse.

Take this simple test to determine if your company is in compliance with COBRA.

Could you defend your method of COBRA administration to an IRS agent or judge?

 Do you….?

• Use written notifications, which have been reviewed by a competent ERISA attorney, to communicate with participants about their COBRA rights? Do you update these notifications when there are changes in the COBRA law?  Send each employee and dependent spouse an initial COBRA notification to his or her home address when first enrolled in your group health, dental, vision, EAP or Section 125 (etc.) plans?
• Send a qualifying event notification to the last known home address of a qualified beneficiary whenever a COBRA qualifying event occurs?
•  Know which events trigger the right to COBRA continuation coverage and which individuals may be entitled to continue coverage?
• Know how to administer all of the new COBRA Medicare disability extension rules?    
• Know when administration fees may be increased to 150%?
• Grant mandated extensions of COBRA coverage to the appropriate beneficiaries within the legal time limits?
• Know under which circumstances termination of COBRA is lawfully permitted?
• Send participants’ termination notices?
• Notify qualified beneficiaries of conversion options during the required timeframe?
•  Keep detailed records of all COBRA-related events? Do you keep copies of all notices sent, including the method used for delivery? Do you keep premium collection records?
• Know when changes in the law occur?
• Have someone to fill in when the individual responsible for administering COBRA is out sick, on vacation or leaves employment? 

For your free COBRA Compliance Kit, email solutions@healthyhalo.com.

Brent Heurter, Healthy Halo Insurance Services