IRS releases final COBRA guidelines.The IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. published final regulations under the Consolidated Omnibus Budget Reconciliation Act Consolidated Omnibus Budget Reconciliation Act, n.pr law that allows individuals to carry over health coverage from a previous job for a limited time at their own expense. of 1985. COBRA cobra, name for African and Asian snakes of the family Elapidae that are equipped with inflatable neck hoods. The family also includes the African mambas, the Asian kraits, the New World coral snakes and a large number of Australian snakes. coverage allows terminated employees to purchase continued health care benefits for themselves and their dependents for a limited period of time. The new rules update the act and address how COBRA applies to employers and employees in the event of a merger or acquisition. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Joan Vines, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. and an associate partner in Grant Thornton's Washington, D.C., office, the most significant aspect of the new regulations is that they spell out the obligations of both the buying and the purchasing entities in mergers. The final regulations * Prevent group health plans from terminating COBRA continuation coverage because of other coverage (for example, Medicare benefits) an employee had prior to electing COBRA. * Give employees and employee organizations flexibility in determining the number of group health plans they maintain. * Provide baseline rules for determining COBRA liabilities of buyers and sellers of corporate stock and assets and permit buyers and sellers to reallocate Verb 1. reallocate - allocate, distribute, or apportion anew; "Congressional seats are reapportioned on the basis of census data" reapportion allocate, apportion - distribute according to a plan or set apart for a special purpose; "I am allocating a loaf of COBRA liabilities by contractual agreement. * Limit the applications of COBRA for most flexible spending arrangements for health coverage. * Eliminate the requirement that group health plans offer employees an option to elect only core (health) coverage under a group health plan that provides both core and noncore (vision and dental benefits are examples of noncore coverages) coverage. "Don't assume that the new regulations are just a finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of the rules that you have been operating under for so long," advised Vines. She recommended that, instead, practitioners reevaluate their clients' and employers' COBRA obligations and procedures to make sure they are compliant. The final regulations apply to qualifying events that occur on or after January 1, 2000. Until then, employers will be allowed to comply in good faith with a reasonable interpretation of COBRA as required under the original statute. |
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