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COBRA - EAPs


Guest mls

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Posted

I read that some EAPs are subject to COBRA. We are starting an EAP for some of our employees in which they can receive free counseling. If inpatient counseling is needed, it will most likely be coordinated with our health plan benefits. Are we required to provide COBRA for free, outpatient counseling sessions?

Posted

Technically, if your EAP provides mental health counseling (i.e., it's a group health plan), it is subject to COBRA. But I think this is widely ignored. I sent a comment letter on the COBRA regs, asking to exclude de minimus EAP benefits at least in the situation where a qualified beneficiary has no other group health benefits from the employer. I don't know whether the IRS will consider an exclusion. (The IRS may think this would require an amendment to the statute.) Even though the comment period on the COBRA regs is over, maybe you could send a letter too, if you think it might help.

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