In the first significant changes to the federal Consolidated Omnibus Business Reconciliation Act ("COBRA") since its enactment in 1986, the Internal Revenue Service ("IRS") recently issued proposed and final regulations intended to address legislative changes and important court decisions affecting the Act. (COBRA requires employers and plan administrators to give qualified individuals the opportunity to purchase employer-provided health coverage at their own expense.).
A summary of the principal changes are as follows:
- Ability To Choose Same Coverage
The final rules no longer allow a qualified individual to choose only "core coverage" (e.g., medical only) where that individual participated in a single plan offering medical and dental coverage when the individual was employed.
