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A Service of OnQue Technologies, Inc. |
| Employer Believes Qualifying Event Notice Must
Be Delivered in 14 Days |
March 6, 2006
By Scott Haines, President
OnQue Technologies, Inc.
Santa Rosa, CA |
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The
following is an excerpt from Questions and Answers from the COBRA Help Desk–Part
II.
Employer: When the employer is also the plan
administrator, how many days are allowed to provide the qualifying event
notice? Your software [COBRA OnQue] says 44 days, but I was told we have only
14 days to deliver the notice. Please explain.
OnQue: In 1995, the
Department of Labor (DOL) issued an opinion letter in which it concluded that
an employer/plan administrator has 44 days in which to notify a qualified
beneficiary of his or her rights and obligations – 30 days as the employer
plus 14 days as the plan administrator. While most COBRA experts and courts
agreed with that opinion, some did not; at least one court ruled against an
employer that failed to send a qualifying event notice within 14 days. However,
on May 26, 2004, the DOL gave teeth to their 1995 opinion by including it in
the final rules regarding health care continuation coverage. Following is an
excerpt from the DOL publication:
From Sec. 2590.606-4. Notice requirements for
plan administrators, paragraph b(2): In the case of a plan with respect to
which an employer of a covered employee is also the administrator of the plan,
except as provided in paragraph (b)(3) of this section, if the employer is
otherwise required to furnish a notice of a qualifying event to an
administrator pursuant to Sec. 2590.606-2, the administrator shall furnish to
each qualified beneficiary a notice meeting the requirements of paragraph
(b)(4) of this section not later than 44 days....
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| Related COBRA Tips |
| How
Many Days Are Allowed to Provide Qualifying Event Notice - 14 or
44? |
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This information is provided by
OnQue Technologies, Inc. for educational purposes only and does not constitute
legal advice. If legal advice or other professional assistance is required, the
services of a competent professional should be sought.
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