COBRA (29 U.S.C. s. 1161) (26 CFR 54.4908B-1) (29 CFR Part 2590)
- This statute requires that plan administrators notify employees or their beneficiaries
within 14 days of a qualifying event of their option to continue their group health
insurance at their own expense. (29 U.S.C. s. 1161)
- A qualifying event can be:
- the employee's death;
- the employee's termination for other than gross misconduct;
- a reduction in the employee's hours sufficient to cause a loss of coverage;
- the employee becoming entitled to Medicare;
- divorce or legal separation of the employee; or
- a dependent child losing that status under the plan. (29 U.S.C. s. 1163)
- The premium for continuation of coverage cannot exceed 102 percent of the prior applicable premium.(29 U.S.C. s. 1162(3)(A))
- The election period for continuation of coverage must be of at least 60 days' duration. (29 U.S.C. s. 1165)
- Technicslly, COBRA only applies to employers who employed more than 20 employees on a typical business day during the preceding calendar year. (29 U.S.C. s. 1161(b)
- However, under the MA Mini-COBRA law (M.G.L.c. 176J, s. 9) COBRA obligations are extended to these smaller employers also.
- A civil action can be brought in the U.S. District Court where the plan is administered, where the breach took place, or where the defendant resides or may be found. (29 U.S.C. s. 1132(e)) The court in its discretion may allow a reasonable attorney's fee and costs of action to either party. (29 U.S.C. s. 1132(g))
- COBRA does not specify a limitations period. In the absence of express statutory guidance, the court will borrow the statute of limitations from the most closely analagous state law. DelCostello v. International Brotherhood of Teamsters, 462 U.S. 151, 158 (1983)