Health plan admin - COBRA |
[Guidance Overview] IRS Updates Form 8928 for Self-Reporting of Excises Taxes Owed for PPACA Failures
"PPACA created several new reporting and compliance standards for plans and employers. The [chart in this document] lists some of those new requirements and their effective dates. Failure to meet any of these must be reported on Form 8928 starting in 2012 as of the due date of the employer's federal income tax return. In general, the penalty assessed under Code ? 4980D is $100 per day, per affected participant for as long as the plan is non-compliant." (Faegre Baker Daniels)
[Guidance Overview] No Extended COBRA Coverage for Disabled Employee Terminated after Reduction of Hours
"As for the employee's argument that a disability extension could be based on an insurer's determination, other courts have held that a plain reading of the statute requires the determination to be made by the SSA. The statutory language requiring a qualified beneficiary to be determined to be disabled 'under title II or XVI of the Social Security Act' seems less than clear on that point, but DOL regulations specifically require a qualified beneficiary to notify the plan administrator that he or she has been determined by the SSA to be disabled." (Thomson Reuters/EBIA)
[Guidance Overview] Must FSAs Offer COBRA to Terminated Employees?
"Issue: Your company will be issuing layoff notices soon. Many employees who will be affected have health flexible savings accounts (FSAs). What are the rules regarding FSAs and COBRA when employment is terminated?" (Wolters Kluwer Law & Business / CCH)
Special COBRA Coverage Terms for the Departing Executive: Pitfalls to Avoid
"Common examples include a period of remaining on active coverage status even after employment responsibilities have largely ceased (for instance during any period in which the executive receives severance compensation), or employer payment of COBRA premiums for some period of time after termination." (E is for ERISA)
[Guidance Overview] Court Considers Whether Reduction of Hours to Zero Triggered COBRA Notice
"The employee's argument that she had a loss of coverage when she was required to make payment other than through payroll deduction is not far-fetched. Another trial court has held that a similar change in the method by which an employee was required to make contributions resulted in a loss of coverage for COBRA purposes." (Thomson Reuters/EBIA)
[Guidance Overview] Court Assesses Penalties for COBRA Notice Violation but Leaves Start Date of Penalty Period Open for Later Decision
"We understand why a court would be confused. By defining a qualifying event as a listed event (e.g., termination of employment) that causes a loss of coverage, COBRA seems to leave the timing question open in situations where the loss of coverage occurs after the listed event." (Thomson Reuters/EBIA)
[Guidance Overview] Summary of Trade Adjustment Assistance Extension Act of 2011, Affecting Health Coverage Tax Credit and COBRA Continuation Coverage (PDF)
"Of note to employers, the 2011 Act modifies the health coverage tax credit . . ., as codified in section 35 of the [IRC] as well as the rules governing health care continuation coverage under [COBRA]." (American Benefits Council)
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