COBRA and MEWAs

[Guest Brenda N.]

Does anyone know if there has been recent regulation changes to COBRA requirements for MEWAs? If the MEWA is made up of employers over 20 employees and employers under 20 employees, are the small employers still exempt from offering COBRA? Do the small employers have to file special exemptions with the government to not be subject to COBRA?

Thanks.

[GBurns]

Is this a DoL filed ERISA MEWA or is it a state regulated MEWA?

If it is a state regulated MEWA, does the state have special state "COBRA" like mini-COBRA in CA?

For there to be recent or any change in regulations there first has to be existing regulations. What are the regulations, that currently apply, to which you are alluding?

[Don Levit]

Excellent question, Brenda. I will give you my opinion. Others are certainly welcome to critique it.

DOL Advisory Opinion 2003-17A may be helpful.

The DOL said a group of employers is a bona fide group or association if under the facts and circumstances, the employers meet 2 tests:

1. They have a commonality of interests.

2. They exercise control over the plan, both in form and in substance.

If the employers are in the same line of business and control and direct the MEWA, your plan would be one ERISA plan. Therefore, the COBRA for 20 or more employees would apply.

If not, it would have an ERISA plan for each employer. So, the COBRA provisions for the 20 employee threshold would apply for each employer.

Don Levit