New Jersey Employment Attorneys Issue COBRA Audit Alert

by Gary S. Young on June 11, 2012

Is your company ready for a COBRA audit? Employers sponsoring group health plans subject to COBRA coverage requirements (companies with 20 or more employees) may be targeted by an Internal Revenue Service COBRA compliance audit. COBRA is the federal law that requires that covered individuals receive an initial notice of rights when they first become eligible to participate in the COBRA-covered group health plan (a common employer omission), and again when a qualifying event occurs, along with the opportunity to elect continuation coverage. These notices must be provided to all qualified beneficiaries within strict time limits.

Under the recently published audit guidelines, the IRS COBRA audit will review the following: