How much is the daily excise tax for COBRA noncompliance?

Prepare for the Consolidated Omnibus Budget Reconciliation Act (COBRA) Test. Utilize flashcards and multiple choice questions, each with hints and explanations. Ace your test with confidence!

Multiple Choice

How much is the daily excise tax for COBRA noncompliance?

Explanation:
The daily excise tax for COBRA noncompliance is a fixed amount assessed for each day the plan fails to meet COBRA requirements, calculated per qualified beneficiary affected. Specifically, $100 is charged for every day of noncompliance for each beneficiary who should have been offered or received continuation coverage. This per-day, per-beneficiary penalty is designed to incentivize timely and complete COBRA administration, so the total can grow with more beneficiaries and more days of noncompliance.

The daily excise tax for COBRA noncompliance is a fixed amount assessed for each day the plan fails to meet COBRA requirements, calculated per qualified beneficiary affected. Specifically, $100 is charged for every day of noncompliance for each beneficiary who should have been offered or received continuation coverage. This per-day, per-beneficiary penalty is designed to incentivize timely and complete COBRA administration, so the total can grow with more beneficiaries and more days of noncompliance.

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