How Do the Wraps Handle State “Mini-COBRA” Laws?

The Wrap templates are designed to comply with the federal laws governing employee benefit plans, especially the Employee Retirement Income Security Act of 1974, or ERISA. ERISA requires plan administrators to meet certain plan documentation requirements—including maintaining a written plan document—and to disclose important information to plan participants by distributing a Summary Plan Description (SPD). Other federal laws that amended ERISA, such as the Affordable Care Act (ACA), COBRA, and HIPAA, impose additional obligations on employers.

While the Wrap Plan Document and SPD are designed to comply with federal law, many states have passed “mini-COBRA” statutes that extend COBRA continuation of coverage to employers with fewer than 20 employees. These states generally require the distribution of state-specific COBRA notices to employees.

Because the requirements vary by state and not all states have model notices, Wrap360 does not provide state-level COBRA notices. The COBRA Notices located in the Model Notices section of Wrap360 are model notices from the U.S. Department of Labor that may be used to satisfy requirements under federal law. (The notices are available in Microsoft Word should the need for customization to incorporate state laws arise.)

The Wrap SPD addresses state continuation of coverage as shown below. If you choose to incorporate state mini-COBRA laws into the Wrap templates, you run the risk of the laws changing and having an outdated SPD. If you wish, you can certainly include a separate document that has your state's mini-COBRA requirements, but the wording below should be ample:

Additional continuation rights may apply under state law. Please contact the Plan Administer for further information.

If you wish to customize the Wrap templates, please consult knowledgeable benefits counsel.