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COBRA COVID-19 Extension Rules

COBRA rules

1 minute read

A Joint Final Rule was recently issued by the Department of Labor, Internal Revenue Service, and the Treasury Department. Under the notice, it extends certain time frames when it comes to an employee’s continuation of coverage under COBRA after employment ends.

The COBRA extension rules only apply to ERISA covered plans. It doesn’t matter whether the plan is self-insured or fully insured as long as it is subject to Federal COBRA and ERISA. Note: public sector non-ERISA groups do not have to comply with the COBRA COVID-19 extension rules.

The Centers for Medicare and Medicaid Services who enforces COBRA provisions, has encouraged plan sponsors of governmental plan to provide similar extensions, but they are not obligated to do so.

For more details, download the Joint Final Rule.

Download our complimentary case study to learn more about how Freeborn County saved their health plan

This blog is intended to be a compilation of information and resources pulled from federal, state and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.

 

National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Rick Labian

Rick Labian

Rick Labian lives by the Golden Rule – he is guided by what is best for his clients and treats others as he would like to be treated. Rick acts as an advisor and advocate for his clients, helping identify goals for their benefit programs and building a strategic plan together. Rick has a rich history with NIS. He has worked for NIS for over 20 years, leading the Eastern region. Rick is the Manager and leads the FBC Client Management Team. Rick’s leadership and experience aids our internal staff and all of NIS’ FBC clients. Rick is a licensed insurance agent and is ACA certified through the National Association of Health Underwriters.