COBRA
Employer’s Failure to Time Provide COBRA Election Notice Results in Retroactive Coverage and Penalties
In Buford v. General Motors, L.L.C., case number 4:16-CV-14465-TGB-MKM, the U.S. District Court of Michigan ruled that General Motors violated COBRA election notice requirements when it failed to timely provide an employee with a COBRA election notice upon his retirement. As a result, General Motors was subject to statutory penalties due to violating federal law.…
Read MoreCalculating the ARP COBRA Premium Subsidy Tax Credit
On May 18, 2021, the IRS released Notice 2021-31 (the “Notice”) providing guidance on the temporary 100% COBRA premium subsidy under the American Rescue Plan Act of 2021 (“ARP”). The Notice addresses how to calculate the premium subsidy and the corresponding tax credit available to premium payees, as well as the rules for claiming the tax credit.…
Read MoreWhat Employers Need to Know About the New COBRA Subsidies
The American Rescue Plan Act of 2021 provides 100% premium assistance for eligible individuals under COBRA for a six-month period. Since its passage in 1985, COBRA has allowed qualified individuals who lose their health benefits due to a life event to continue to receive group health benefits for a set period of time. Continued coverage,…
Read MoreCOBRA Noncompliance Can Be Costly
Now is a good time for employers to review their COBRA procedures or check with their COBRA vendors about documentation processes given a recent case out of the Southern District of Ohio. In Morehouse v. Steak ‘n Shake, Inc., the court held that the company violated its obligations under COBRA after failing to provide an…
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