A newly hired human resources professional works for a business operated by an Indian tribal government. She is surprised to learn that the employer does not offer COBRA when a qualifying event occurs. Is the  employer out of compliance?

The answer is a little complicated, but the core question is this: Do ERISA, the Internal Revenue Code and COBRA apply to a health plan sponsored by a tribal government?

This question is probably being asked more regularly. Even though plans offered by tribal-run casinos are now clearly subject to ERISA, the tax code and COBRA, this $25 billion-per-year industry has fostered numerous ancillary businesses. Only 16 states and the District of Columbia have no federally recognized Indian tribes.

Pre-PPA State of the Law
Before Aug. 17, 2006, the answer to the ERISA/tax code/COBRA question was far from clear. ERISA does not apply to governmental plans. Until the Pension Protection Act of 2006 was enacted, that definition did
not address plans established or maintained by Indian tribal governments.

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