Employers who have 20 employees or more on at least 50% of its working days during the year must meet the requirements of IRC Sec. 4980B, also known as "COBRA."
Failure to comply with COBRA requirements may result in serious penalties.
Under COBRA, an employer must give his covered employees (including spouses and dependent children who are covered) the opportunity to elect continuation coverage under an employer maintained group health plan (including plans to which the employer does not contribute financially) after any of the following events:
A. The death of the covered employee;
B. The divorce or legal separation of the covered employee;
C. The termination of the employee's employment, unless for gross misconduct;
D. The covered employee becomes entitled to Medicare;
E. A dependent child ceases to be covered by the plan due to his or her attained age; or
F. The filing by the employer for Chapter I I bankruptcy.
Failure To Comply
This document was last modified on July 26, 1999
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