There's nothing more scarey than the fear that presents itself when a COBRA administrator hears the words, "COBRA audit". Review these survival tips to make it through a requested COBRA audit.
2. Nothing can compare to the fear a COBRA administrator feels
when they hear the words, “COBRA audit.”
3. No one wants to experience a COBRA audit, but as a result of
revised IRS audit guidelines, audits have increased
significantly, along with the possibility of penalties.
4. The IRS guide: “Audit Techniques and Tax Law to Examine
COBRA Cases (Continuation of Employee Health Care
Coverage)”
5. Provides standards for IRS investigators to use for COBRA
audits to ensure that employers are in compliance.
6. Follow these tips to make sure you’re prepared to pass your
COBRA audit.
8. A copy of any contracts with third-party administrators that
handle COBRA administration and service providers that
provide benefits subject to COBRA
9. Methods used to notify the plan administrator of a
qualifying event
10. Methods the plan administrator uses to notify qualified
beneficiaries of COBRA rights
19. Health plan enrollment package, including notices and
disclosures provided to employees at the time of enrollment
(for example, the COBRA general notice)
20. Information on any wellness programs offered by the
plan that might be subject to COBRA
30. • Take it seriously.
• Don’t ignore or procrastinate.
• Gather all information immediately.
31. • Contact the auditor to establish cooperation and glean
reasons, other pertinent information.
• Consult with legal counsel as needed.
• Do not provide more information than what the audit
letter requests.