Premium reimbursement plan

[Guest Kathleen Meagher]

My client is setting up a plan to reimburse employees for premiums for coverage under a medical program for retired members of the military. The reimubursements are paid by the employer and are limited to premium reimbursements, so benefits are excluded from income under Code section 106. We don't have to worry about any issues under section 105 or 125.

Is there any argument that this program is not subject to COBRA or HIPAA? I think it probably is, but it sure would be nice not to give out COBRA notices to people who would gain no benefit COBRA coverage.