ARRA COBRA issues

[Guest George Chimento]

Submit comments to any of these issues. I've included my own "answers" to date, based on reasonable speculation, but we are all learning.

1. Stand-alone dental and vision plans. Covered? They would seem to be, because they are ERISA plans subject to COBRA. Is this just a drafting error? It is inconsistent with the rule that participants may not downgrade coverage to stand-alone dental and vision plans.

2. Same-sex spouses and civil union partners. Covered? It seems pretty clear they do not have rights to elect separately. They are not COBRA benficiaries.

3. Subsidy available if same-sex spouse or civil union partner is the other member of the family unit? I don't think so. In fact, the employer who advances 65% of family premium may not get back all the money. The subsidy only applies to single life coverage cost in this circumstance.

4. What if the family unit includes a dependent child and a same sex spouse, and what if there is no incremental cost for the same sex spouse coverage (over family cost)? What if there is an incremental cost? This will be different than calculating imputed taxable income, which looks to the cost of single coverage. The employee should be entitled to 65% of the cost of a family plan which covers the "traditional" members of the family. If there is an incremental cost for the same sex spouse, that portion of the premium is not eligible for the 65% reimbursement.

5. What if non-dependent children are covered due to state law requirements which permit employees to cover children for a period of years after loss of dependent status? The same result as in No. 4. There is probably no subsidy for the incremental cost.

6. In a mini-COBRA state, where coverage is not due to federal COBRA, how does the employer get reimbursed? The statute reads as if the reimbursement goes to the insurer in non-federal COBRA situations. However, that must be a drafting error in cases where the employer pays the premium. Otherwise, it's impossible administration for employers who go above and below the 20 employee test for federal COBRA coverage.

Regards,

George Chimento