Summary: Pursuant to a congressional request, GAO reviewed the Department of Labor's (DOL) and the Internal Revenue Service's (IRS) enforcement of the health insurance continuation requirements of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), focusing on their: (1) efforts to help individuals who bring cases of alleged noncompliance by employers to their attention; (2) procedures for investigating those allegations; and (3) enforcement history.
GAO found that: (1) IRS sent informational material to people inquiring about continued insurance benefits, but provided no remedy for individuals denied benefits; (2) IRS referred noncompliance allegations to its district offices; (3) DOL provided information on benefit entitlement and application procedures and would also contact and advise employers on behalf of individuals who appeared to be entitled to continued health insurance; and (4) although DOL believed that most employers would comply when they were made aware of their responsibilities, it would not take enforcement action in the event of noncompliance unless a number of beneficiaries were involved.
