Common use of COBRA and HIPAA Compliance Clause in Contracts

COBRA and HIPAA Compliance. Parent shall be responsible for administering compliance with the health care continuation requirements of COBRA, the certificate of creditable coverage requirements of HIPAA, and the corresponding provisions of the Parent Health and Welfare Plans with respect to ElderCare Individuals and their covered dependents who incur a COBRA qualifying event or loss of coverage under the Parent Health and Welfare Plans at any time on or before the Close of the Transition Date. Parent shall keep a separate account of the costs of such COBRA compliance administration that are incurred and paid for by Parent with respect to any ElderCare Individuals and their covered dependents at any time during the period from the Close of the Distribution Date through the Close of the Transition Date (the "COBRA Transition Account"). As soon as practicable following the Transition Date, ElderCare shall pay to Parent an amount equal to the amount set forth in the COBRA Transition Account. Effective Immediately after the Transition Date, ElderCare shall be responsible for administering compliance with the health care continuation requirements of COBRA, the certificate of creditable coverage requirements of HIPAA, and the corresponding provisions of the ElderCare Health and Welfare Plans with respect to ElderCare Individuals and their covered dependents who incur a COBRA qualifying event or loss of coverage under the ElderCare Health and Welfare Plans at any time after the Close of the Distribution Date.