Answer Bank Category: Fine for not acting on COBRA trigger?

Question:

You clarified that we have to offer COBRA benefits to variable-hour employees who lose their eligibility. We did not do that. And we have a number of employees whose coverage was terminated.

What are the fines and how should we handle this now?

Answer:


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Question:

We have a flexible spending arrangement (FSA) that allows employees to contribute portions of their earnings to be used for health expenses. The employee is not taxed on their contribution. We have always offered COBRA continuing coverage to employees who terminate their employment.

We now have the situation where we are offering COBRA to continuing employees who no longer meet the eligibility requirements for continued employer coverage because their hours of service have been reduced.

Can these employees use what’s in their FSA account to cover the cost of COBRA or an individual health plan they may get on an exchange?

Answer:


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Question:

How does COBRA work when someone loses their eligibility for coverage?

Answer

Question:

What notification do we have to give an employee who is losing their eligibility for coverage?

Answer