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February 19, 2009

Consolidated Omnibus Budget Reconciliation Act ( COBRA )

Your Guide

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Definition

Law which amends the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code and the Public Health Service Act to provide temporary continuation of group health coverage that otherwise might be terminated, to certain former employees, retirees, spouses, former spouses, and dependent children. Coverage is  at group rates.

Eligible individuals must have lost coverage due to a qualifying event and have been enrolled in their employer’s health plan when working.

Generally, group health plans for employers with 20 or more employees in the previous calendar year are subject to COBRA.

Referring Cite

IRC § 4980B, Revenue Ruling 2003-70,  IRS Publication 4181,

Additional Helpful Information

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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