Employers' Common Health Benefit Issues

Federal COBRA Law:

Only applies if you have 20 or more full time equivalent employees

Employer is administrator

ERISA fines are $110 per violation, per day

IRS and DOL Fines are $100 per violation, per day

DOL has never lost a COBRA case

No statue of limitation on compliance

Eight required COBRA notices for ALL beneficiaries

All beneficiaries are entitled to same benefits as active employees

Benefit periods vary from 18 to 36 months

Missouri State Continuation

Applies to employers with 19 or fewer full time equivalent employees

Only applies to medical insurance

Benefit period is only nine months

Must be on the plan for at least three months to qualify

Family Medical Leave Act

Passed in 1993 to help families deal with health issues

Applies only to employers with more than 50 employees within 75 miles

12-week maximum benefit period

FMLA recipient covered just like an active employee, not a COBRA qualifying event

Health Insurance Portability Accountability Act of 1996

Known as the Kennedy-Kassebaum Act

Eliminated "job lock" and allows portability

Provides for elimination of pre-existing conditions

Creditable coverage provision

Guaranteed availability of coverage in certain conditions

Small employer has two to 50 employees