COBRA Compliance

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="039285a1erlcgo.png"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>LIFE, DISABILITY, MEDICAL, MEDIGAP, DENTAL, LTCI and ANNUITIES </B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="LIFE, DISABILITY, MEDICAL, MEDIGAP, DENT"><U><B>home</B></U></A></div> <div>                                                   </div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="038d2c00dkelyh.png"> <div> W. Forrest Veal, CLU</div> <div> P. O. Box 700222</div> <div> Dallas, TX 75370</div> <div> 972 250 6516</div> <div> 1 888 845 8325</div> <div> Fax 1 775 542 0808</div> <div> E-mail - vealbs@juno.com</div> <bR> <bR> <bR> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>COBRA Compliance</I></div> <bR> <div> COBRA (Consolidated Omnibus Budget Reconciliation Act) provides that employers' group health plans must offer "qualified beneficiaries" (certain employees, ex-employees, spouses, and dependents) the option to continue their health care insurance coverage. The COBRA provisions comes under the Internal Revenue Service section 4980B. Since its original effective date of July 1, 1986, Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) has been extensively modified and expanded.</div> <bR> <div> This Law places the responsibility of COBRA on the <B>EMPLOYER</B>, who should never assume that the insurance company is responsible and every administrative exception made by the Employer should have insurance company approval.</div> <bR> <div> All employers who had 20 or more employees <B>on 50 percent of its typical business days </B>during the preceding calendar year <B>must</B> comply with COBRA. The only exceptions to this rule are:</div> <bR> <div> 1. The Federal Government has its own rules regarding continuation coverage, and</div> <div> 2. Church plans (within the meaning of section 414(e) of the Internal Revenue Code.</div> <bR> <div> To determine the number of employees, all full-time and part-time employees count <B>regardless of their eligibility for the group health plan. </B>Under the 1999 Proposed Regulations, part-time employees are counted as a fraction of a full-time employee based on the number of hours worked.</div> <bR> <div> Effective January 1, 2000 the IRS issued many significant final and new proposed changes to COBRA law - the most sweeping changes in 12 years. Compliance with COBRA Regulations places a huge burden on employers. You may review the 30 page Final Rules and Regulation Document dated May 26, 2004 by clicking<A HREF="http://www.dol.gov/ebsa/regs/fedreg/final/2004011796.pdf" TARGET="_top" TITLE="http://www.dol.gov/ebsa/regs/fedreg/fina"><U><B> "here".</B></U></A> </div> <bR> <div> There are a number of COBRA Administrative Solutions including, 1.  Full service out-sourceing, 2. Partial service out-sourceing, 3. Internet  self-administration, and 4. Manual self-administration. You will find valuable information about Administrative Solutions and Training that can help you decide which method of COBRA administration is best for your company by reviewing the following collection of web sites. Other sites can be found by doing a Yahoo internet search on "COBRA Administration".</div> <bR> <div> <A HREF="http://www.ascentis.com" TARGET="_top" TITLE="http://www.ascentis.com"><U><B>www.ascentis.com</B></U></A><B>                                             For Companies that are comfortable with</B></div> <div> <A HREF="http://www.benefitsolved.com" TARGET="_top" TITLE="http://www.benefitsolved.com"><U><B>www.benefitsolved.com</B></U></A><B>                                    self-administration but would like a periodically</B></div> <div> <A HREF="http://www.cobraguard.net" TARGET="_top" TITLE="http://www.cobraguard.net"><U><B>www.cobraguard.net</B></U></A><B>                                          updated cobra reference manuel, check out the</B></div> <div> <A HREF="http://www.cobraman.com/products.asp" TARGET="_top" TITLE="http://www.cobraman.com/products.asp"><U><B>www.cobraman.com/products.asp</B></U></A><B>                 "Quick Reference to COBRA Compliance" book</B></div> <div> <A HREF="http://www.hrtrainingcenter.com" TARGET="_top" TITLE="http://www.hrtrainingcenter.com"><U><B>www.hrtrainingcenter.com</B></U></A><B>                                available from </B><FONT SIZE="3" COLOR="#0000FF" FACE="Arial" ><A HREF="http://www.aspenpublishers.com" TARGET="_top" TITLE="http://www.aspenpublishers.com"><U><B>www.aspenpublishers.com</B></U></A></FONT><B> with</B></div> <div> <A HREF="http://www.onque.com" TARGET="_top" TITLE="http://www.onque.com"><U><B>www.onque.com</B></U></A><B>                                                  a 30-day risk-free approval for manuel & updates</B></div> <div>                                                                                  <FONT SIZE="2" COLOR="#FF0000" FACE="Arial" >Click on Pension, Benefits & Compensation - then under Benefits</FONT></div> <div> <B>                                                                                 </B><FONT SIZE="2" COLOR="#FF0000" FACE="Arial" >& Compensation, click on Employee Benefits, then page down</FONT></div> <div> <B>                                                                                 </B><FONT SIZE="2" COLOR="#FF0000" FACE="Arial" >and select this book from the books listed.</FONT></div> <div> <B>To return to the Table of Subjects, click "home" in the above blue border.</B></div> </td> </tr></table></body>