COBRA Continuation Coverage Requirements
Previously published on May 2001
COBRA was adopted in late 1985 as both a part of ERISA and the Internal Revenue Code. The IRS was assigned responsibility for adopting regulations on the coverage provisions of the statute, and the DOL was given responsibility for reporting and disclosure rules (i.e., the notices required). Despite the fact that the IRS issued proposed regulations in 1987 indicating that good faith compliance with the statute, as generally interpreted in the regulations, would protect an employer from excise taxes which the IRS could levy, the courts and DOL have largely not applied any good faith standard, but rather have been willing to extend COBRA's requirements very liberally when to do so would enable a participant to receive health coverage that would otherwise be unavailable.
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