Our benefits broker and consulting firm provided the following opinion regarding the COBRA grace period even though it does not explicitly apply to non-ERISA, governmental employers. I think we are leaning toward providing this temporary relief but I am curious how other cities are handling this issue.
"While the agencies fell short of making the rules regarding the outbreak period directly applicable to non-ERISA, governmental employers, the final rule includes a statement by HHS encouraging sponsors of non-federal governmental group health plans to extend similar timeframes and relief consistent with that afforded to ERISA-covered plans. Specifically, this language is provided from HHS: "HHS encourages plan sponsors of non-Federal governmental group health plans to provide relief similar to that specified in this notice to participants and beneficiaries, and encourages states and health insurance issuers offering coverage with a group health plan to enforce and operate, respectively, in a manner consistent with the relief provided in this notice."
We wish the agencies had presented the rule in a more unequivocal manner, and it is possible that HHS will follow up with more formal guidance of its own. Nevertheless, due to this "encouragement" from HHS, we believe that non-ERISA plans should provide this temporary relief as well. Employers that desire to ignore this "encouragement" should consult with legal counsel."
Thanks for any feedback.
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Blake E. Pennington
Assistant City Attorney
113 W. Mountain St., Suite 302
Fayetteville, Arkansas 72701
Telephone: (479) 575-8313
bpennington@fayetteville-ar.govmailto:bpennington@fayetteville-ar.gov
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