COBRA Compliance Checklist

Administering COBRA and Premium Collection includes much more than just telling employees or dependents they can stay on your health plan, but COBRA doesn't have to consume your entire workday either.

To get a better idea of your COBRA state of affairs, use the following checklist to see how well you meet the stringent IRS and DOL requirements or where you'll be making costly COBRA errors.

COBRA Compliance Requirements Under TAMRA

(Technical and Miscellaneous Revenue Act)

Proof of COBRA training
Written COBRA procedures (manual with instructions)
Documentation of program design (when first subject to COBRA) and program updates (through present) based on competent professional advice
Documentation of program monitoring, by qualified independent third party

To ensure compliance with an IRS audit, all FOUR check marks are necessary

COBRA Notices (required unless otherwise specified)

General Notice (required when employer is first subject to COBRA or participant is first enrolled in plan)
Qualifying Event Election Notice
Notice of Unavailability
Extension Notice (recommended to confirm new period of coverage and communicate late charges)
Conversion Notice (if applicable)
Premium Billing Notice (recommended as grace period reminder and regular communication method)
Notice of Early Termination Coverage
Notice of Insignificant Premium Underpayment
Notice of Plan Changes (e.g., open enrollment and rate changes)
Expiration Notice (recommended to confirm end of COBRA coverage)
ARRA Subsidy Notice
ARRA Special Election Notice
ARRA Qualifying Event Election Notice
ARRA Plan Enrollment Option
2010 DOD Act Notice 

FIFTEEN check marks indicate a complete COBRA program

Written Procedures

Premium billing (recommended)
Insignificant premium underpayments
Complete and accurate disclosure to health care providers
Coverage cancellation (voluntary and involuntary)
Confirmation of correct election (recommended)
Reasonable notice procedures for Qualified Beneficiary

SIX check marks indicate proper compliance

Documentation Systems

Documentation of each notice sent (including proof of mailing)
Documentation of COBRA dates (29 dates possible per Qualified Beneficiary)
Documentation of notification language updates
Documentation of procedural updates
Documentation of events reported to the employer/plan administrator for divorce/dependent events
Documentation of payments received

SIX check marks may be necessary to PROVE compliance if challenged

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