There is a lot of speculation on the meaning and execution of the new COBRA regulations. Some folks think employers will be on the hook for 65% of COBRA fees, others are certain that insurance providers will have to ante up. But one thing is certain -- nothing is certain until the Feds provide model notices and guidelines.

Still confused? Join the ever-growing club! Some COBRA participants are submitting just 35% of their monthly fee in anticipation that 65% will come from somewhere else. Because no one knows when the reimbursement will come to fruition, the best advice you can give your involuntarily terminating employees is to pay the whole amount until further notice.

Further speculation has employers throwing in the towel on health insurance -- period! But until the Department of Labor comes through we might as well all just sit tight and wait. You can be sure though that we will post information right here as soon as we get more information. And your S & A administrators will be ready to help you!

Best regards,

Donald S. Sarette, Principal/CFO