Non-Federal Gov't EEs & COBRA

[Guest teesda]

In researching COBRA, it states that ERs with 20+ EEs that are private sector and MOST state and local governments fall under COBRA regulations.

I can not find out information on what the MOST state and local government entails? Do basically all state and local agencies fall under COBRA?

I would appreciate any input.

[oriecat]

Here's the regulations:

26 CFR 54.4980B-2

Q-4: What group health plans are subject to COBRA?

A-4: (a) All group health plans are subject to COBRA except group health plans described in paragraph (b) of this Q&A-4. Group health plans described in paragraph (b) of this Q&A-4 are referred to in Sec. Sec. 54.4980B-1 through 54.4980B-10 as excepted from COBRA.

(b) The following group health plans are excepted from COBRA--

(1) Small-employer plans (see Q&A-5 of this section);

(2) Church plans (within the meaning of section 414(e)); and

(3) Governmental plans (within the meaning of section 414(d)).

© The COBRA continuation coverage requirements generally do not apply to group health plans that are excepted from COBRA. However, a small-employer plan otherwise excepted from COBRA is nonetheless subject to COBRA with respect to qualified beneficiaries who experience a qualifying event during a period when the plan is not a small-employer plan (see paragraph (g) of Q&A-5 of this section).

(d) Although governmental plans are not subject to the COBRA continuation coverage requirements, group health plans maintained by state or local governments are generally subject to parallel continuation coverage requirements that were added by section 10003 of COBRA to the Public Health Service Act (42 U.S.C. 300bb-1 through 300bb-8), which is administered by the U.S. Department of Health and Human Services. Federal employees and their family members covered under the Federal Employees Health Benefit Program are covered by generally similar, but not parallel, temporary continuation of coverage provisions enacted by the Federal Employees Health Benefits Amendments Act of 1988.

See 5 U.S.C. 8905a.

[oriecat]

And the reference to 414(d) for Governmental plans takes us to the IRS Code:

(d) Governmental plan

For purposes of this part, the term “governmental plan” means a plan established and maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing. The term “governmental plan” also includes any plan to which the Railroad Retirement Act of 1935 or 1937 applies and which is financed by contributions required under that Act and any plan of an international organization which is exempt from taxation by reason of the International Organizations Immunities Act (59 Stat. 669).

[Guest fritzreb]

Public Sector COBRA: The Centers for Medicare & Medicaid Services (CMS), U.S. Department of Health and Human Services, has advisory jurisdiction with respect to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) as it applies to state and local government employers and their group health plans.

The public sector COBRA law is set forth at 42 U.S.C. 300bb-1 through 300bb-8 (Title XXII of the Public Health Service Act), and is entitled "Requirements for Certain Group Health Plans for Certain State and Local Employees." The public sector COBRA law (42 U.S.C. 300bb-7) provides for a private cause of action if an individual is denied a COBRA right under such a group health plan.