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In a post ACA world, employers who offer COBRA payments for a period after an employee’s termination should be VERY CLEAR that when employer COBRA severance ends, the terminated employee will pay the entire COBRA payment and will NOT be able to purchase a less expensive individual health plan outside of the open enrollment period.

Employers are dedicating much time and energy ensuring compliance with the multitude of new requirements imposed by the Affordable Care Act (ACA) - understandably so. ACA compliance is uncharted territory, and miscalculations carry the potential for stiff financial penalties. However, employers should take care to remain focused on overall plan compliance, specifically ERISA regulation, as the attention on employer-sponsored group health plans from various federal agencies will only increase.