Question of the Week

Posted by BAS - 14 April, 2016

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Q.- We have 15 employees, but last year we were part of a company with 100+ employees. Will mini-COBRA or federal COBRA apply to us? What happens to our former employees on COBRA now?

A.- You should consult your legal counsel to determine if COBRA’s small employer exception applies.  The determination will depend on the ownership structure of the company before and after the reorganization. A plan is not subject to COBRA for any calendar year if all employers maintaining the plan employed fewer than 20 employees on a typical business day during the preceding calendar year.

If a qualified beneficiary has a qualifying event when a plan is subject to COBRA, and during the COBRA period, the plan is no longer subject to COBRA, the qualified beneficiary remains entitled to coverage for the remainder of the COBRA maximum coverage period. 


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