What are the COBRA obligations of a large employer with a multiple emp

[Guest RMM]

I understand the IRS final and proposed regulations and the successor employer issues. But, if a person would have become a QB had the small employer had over 20 employees in the prior year and that potential QB's election period would still be running (again if they had > 20 employees), will COBRA apply to this "QB." The regs say adding a large employer causes COBRA to apply "immediately." Would it apply to this person? It seems to me the answer is no because this person is not really a QB, because at the time of his/her qualifying event, COBRA did not apply. For example, Q&A-1(d) of the B-4 regulation seems to indicate that COBRA coverage will not apply retroactively. Does anyone agree or disagree?

[This message has been edited by RMM (edited 01-14-2000).]