Discount Vision Plans

[Guest CRC02]

Are discount vision programs (offering discounts on exams, hardware and laser sugery) offered only to employees of certain employers "plans" under ERISA (i.e. such "discount" programs are medical benefits). Would they also be subject to COBRA?

[Guest BenefitsLawyer]

The IRS considers such plans to be subject to COBRA "if coverage under the plan would not be available at the same cost to an individual but for the individual's employment-related connection to the employer or employee organization." That's in the regs at 54.4980B-2 Q&A 1(a).

For ERISA, it's not so clear. It probably depends on how much the employer has to do to "maintain" the program. If it's anything more than making a one-time payment to get the employees into the plan, it starts to look like the employer is maintaining it and it starts to look like an ERISA welfare plan. (Vision benefits are medical benefits.)

Hope this helps.