On January 12, 2001, the IRS issued new final regulations regarding COBRA continuation coverage. These are the second set of final regulations issued by the IRS on COBRA in two years. In February 1999, the IRS issued final regulations and new proposed regulations. After waiting nearly twelve years to finalize the previous proposed regulations, the IRS has gotten downright speedy in providing COBRA-related guidance.
The new regulations adopt the regulations proposed in February 1999, with a few changes and clarifications and are generally applicable to qualifying events occurring on or after January 1, 2002. The following proposed rules became final when the new regulations were issued:
- Small Employer Exception.
