COBRA Compliance Quick-Review

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Although not an exhaustive compliance audit, this can serve as a tool to evaluate if your current program meets Department of Labor and Internal Revenue Services requirements.

Check all those applicable:

Communication and Monitoring Requirements

Model COBRA Notices that are part of your communication procedures:

Notice to all employees explaining their rights under COBRA (commonly known as the “General Rights Notice”)
Notice to employees/dependents who experience a “qualifying event”
Notice to qualified beneficiaries if they are not eligible to continue coverage
Notice to COBRA participants if their payment is short by an “insignificant” amount
Notice to COBRA participants of their conversion privilege
Notice of termination when coverage is cancelled prior to the end of the COBRA term

____ I understand the criteria that is required by law to be incorporated in all the notices listed above.

____ My current program meets the requirements of providing these notices on a timely basis.

Daily Responsibilities

Monitor COBRA election periods
Monitor COBRA participant’s time frames
Collect funds for COBRA monthly premiums

Process Documentation & Retention

COBRA administration is more than just taking care of individuals “on COBRA”; it is a total process of notifying, tracking, and documenting all facets of compliance with the complex law.

Documentation and proof of mailing of all notifications for 7 years

Documentation and proof of mailing of all received communications for 7 years

If challenged by a regulator or a carrier, I could provide documentation that  COBRA has been properly administered

Compliance is not optional, it is mandated by law.

Penalties, fines and repercussions