New COBRA Audit Guidelines

Lorman Education Services

Are you prepared for a COBRA audit?

The Consolidated Ombibus Budget Reconciliation Act of 1985 (COBRA) requires employers' group health plans provide certain employees and their family members the right to temporarily continue health coverage under the plan at group rates.

This topic will help you comply with COBRA by understanding which of your employees are eligible for COBRA rights (‘qualified beneficiaries'), when they become eligible for COBRA (‘qualifying events') and what happens if an employee elects COBRA continuation coverage. Further, in March 2012, the IRS released a publication titled ‘Audit Techniques and Tax Law to Examine COBRA Cases.' This publication signifies increased audit activity on COBRA compliance.

This information will also help you identify and prepare for the areas of focus in an IRS COBRA audit. The topic will help you prepare for an IRS COBRA audit by explaining what you should be doing to comply with COBRA, how to respond to an auditor's document request, and what to expect if the auditor asks to interview you. This information is critical for employers to properly prepare for an IRS COBRA audit and avoid the significant penalties that may apply.

Learning Objectives

• You will be able to describe and prepare required notices and other documents required by COBRA. These documents are of significant interest to an IRS COBRA auditor.
• You will be able to discuss IRS COBRA audit techniques, when a COBRA audit is typically triggered, what documents the auditor will request for review, how to prepare for the auditors interview, and penalties that may apply.
• You will be able to identify employees who may be eligible for COBRA continuation, the events triggering an employee's right to continuation coverage, and what information to retain to prepare for a COBRA audit.
• You will be able to recognize COBRA qualified beneficiaries, qualifying events and understand the significance of each.

More Information, How to Register