Compliance Stuff

Consolidated Omnibus Budget Reconciliation Act (COBRA) compliance often gets treated as a “set it and forget it” administrative task, particularly when employers outsource to third-party administrators. But the legal obligation to provide compliant COBRA notices ultimately rests with the plan administrator, not the COBRA vendor . That makes periodic reviews of COBRA notices essential . A deficient notice is not just a technical error; it can expose the plan (and employer) to statutory penalties, litigation costs, and participant claims. In practice, we routinely see COBRA notices that do not fully comply with COBRA, even when prepared by experienced vendors. Common issues include vague or incomplete election instructions, no reference to the name of the plan, missing deadlines, or unclear premium information . These deficiencies are often discovered only after a participant challenges the notice, at which point it is too late to correct the problem without consequences. Recent experi...

Employer-sponsored group health plans operate at the intersection of multiple federal regulatory frameworks — ERISA, the ACA, COBRA, HIPAA, the Mental Health Parity and Addiction Equity Act (MHPAEA), and more. Each imposes its own documentation requirements, reporting deadlines, and operational obligations. The challenge for most employers is not a lack of intent to comply, but the sheer complexity of keeping pace with layered and frequently updated rules. A proactive, systematic compliance review conducted with legal guidance is one of the most effective tools employers have to reduce legal exposure, strengthen plan governance, and prepare for regulatory inquiries . The following overview identifies the key compliance areas that such a review should cover. Plan Governance and ERISA Documentation ERISA requires every welfare benefit plan to be maintained pursuant to a written plan document that satisfies specific requirements. Compliance reviews routinely reveal documentation gaps that...

In December 2025, the U.S. Postal Service (USPS) adopted a new rule for postmarks so that they may indicate the processing date, instead of the date the post office took custody of the item. Employers may want to note this new postmark rule so that they don’t violate their legal notice requirements concerning their employee benefit plans. Quick Hits The USPS recently changed a rule so that postmarks may reflect the processing date, rather than the date a post office obtained a letter or package. The new rule could lead to fines for employers if mandatory notices concerning employee benefit plans are deemed late. Electronically sending mandatory notices can help to meet a legal deadline, if the recipient has agreed to electronic communications. Under federal laws like the Employee Retirement Income Security Act (ERISA), the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), the Health Insurance Portability and Accountability Act (HIPAA), and the Affordable Care Act (ACA) ,...

  Illinois will soon require fully insured health policies issued in the state to cover parents and stepparents who qualify as dependents, and employers that sponsor these group health plans must take note. This expansion of the Illinois Insurance Code, which applies to policies issued, amended, delivered, or renewed after January 1, 2026, creates new administrative challenges and compliance obligations for group health plans – especially since they typically offer dependent benefits only to children and spouses or domestic partners. We’ll explain what’s changing, how it impacts employers, and what you should do next. A Significant Shift in Dependent Eligibility Gov. JB Pritzker signed a bill ( HB 5258 ) into law last year that will soon require accident and health insurance policies that provide dependent coverage to make that coverage available to any parent and stepparent who: has gross income that is less than the IRS exemption amount ($5,050 for 2025); receives a majority...

  On Labor Day 50 years ago, President Gerald Ford signed the Employee Retirement Income Security Act (ERISA) into law. ERISA , a long time in the making, has had notable successes—but also has led to much litigation and perhaps even contributed to the decline of pension plans. Congress drafted and revised the law after Studebaker closed its plant in South Bend, Ind., in 1963 and left many employees without the pensions they had been promised. ERISA has “accomplished much of what it set out to do,” said Lou Mazawey, an attorney with Groom Law Group in Washington, D.C. “Without ERISA, there would be far fewer workers with retirement savings and far fewer workers with robust health insurance,” said Juliana Reno, an attorney with Venable in New York City. However, ERISA also has become a weapon for plaintiffs’ attorneys to wield against retirement plan administrators and others in court. “We have seen in the past 10 years an explosion of litigation challenging the fees and investment...

When an employee is on an extended leave of absence, there is often confusion regarding whether and to what extent the employer must continue to provide coverage to the employee under the employer-provided health plan.  To determine whether coverage is required, the employer should consider the terms of the plan, COBRA requirements, and whether the leave is covered by FMLA.  The Plan Terms.    Employer-provided health plans include continuing service requirements for continuing eligibility.  For example, it is common for a health plan to require employees to perform an average of at least 30 hours of service per week to be eligible for coverage under the plan.  When an employee goes out on a leave of absence, and the employee’s average hours of service typically fall below the minimum coverage requirement, the employee may no longer be eligible for coverage under the plan.     FMLA Leave.   Suppose an employer is subject to the Family and Med...