COBRA law was passed by Congress in 1986.  The regulations require sponsors of group health plans with 20 or more employees to allow employees and their dependents the opportunity to continue their group health insurance benefits in certain circumstances.

COBRA law mandates employers provide a number of notices, including:

• Initial COBRA Notice:  Sent to newly employees/dependents within 90 days of first becoming covered under the plan.
• Qualifying Event Notice: Sent following a termination of employment, reduction of hours, divorce, legal separation, child no longer dependent, or employer’s filing for bankruptcy.
• Early Termination:  Sent if an individual will lose coverage prior to the end of the maximum coverage period.
• COBRA Unavailability:  Sent when an individual requests, but is not eligible for, COBRA continuation coverage benefits.

Employers should understand that COBRA law is an employer-based law.  Insurance carriers are not required to provide the employer with COBRA administration assistance. 

Employers subject to Federal COBRA law should implement proper COBRA procedures, beginning with the creation or purchase of a COBRA procedures manual containing all relevant up-to-date COBRA notices.

To visit the Department of Labor website and review the various COBRA statutes, click below:

www.dol.gov/ebsa

CobraAid specializes in helping employers with in-house COBRA administration.  Our COBRA software, up-to-date notices, and e-mail support for your COBRA questions are all designed to help your company get COBRA compliant.

 For more information about CobraAid's COBRA Compliance Program:

Employers Click Here

Brokers Click Here.

For a Free COBRA Employers Guide, CLICK HERE.

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