COBRA Administration

COBRA — the Consolidated Omnibus Budget Reconciliation Act — offers certain employees, as well as their covered spouse and dependents, the right to pay premiums and continue group health insurance coverage under certain circumstances. Continuing legislative changes are making COBRA harder to administer, not easier. With the right benefits partner, you can spend your time managing your workforce.

We ensure your COBRA is handled properly

Open enrollment, state continuation, USERRA and eligibility are all administered to the required timelines, with documented proof of notice.

When an employee can elect COBRA

You can elect COBRA for you and your family if you otherwise would lose coverage because:

• You quit your job.
• You were fired, unless it was for “gross misconduct.”
• Your hours were reduced and you no longer qualify as a full-time employee for the workplace health plan.

The law lets you continue coverage for up to 18 months if you quit, lose a job, or your hours are reduced, and up to three years if the coverage loss was due to other reasons.

When dependents can elect COBRA

Health plan dependents such as spouses and children can elect COBRA if they lose eligibility for coverage because of:

• Death of the covered employee.
• Age — an adult child turns 26 and can no longer remain on a parent’s plan.
• Divorce or legal separation from the covered spouse.
• Eligibility by the covered employee for Medicare.

Keep in mind that you must be covered by the employer-sponsored plan at the time of your job loss or other qualifying event, or you are not eligible for COBRA.

Why administration gets expensive

COBRA penalties are driven by notice failures far more often than by coverage disputes. Timely general notices, election notices and premium tracking — with records that prove what was sent and when — are the whole job.

What’s included

• Initial general rights notices
• Qualifying event election notices
• Election tracking and processing
• Premium billing and collection
• Grace period and termination notices
• Open enrollment for COBRA participants
• State continuation administration
• USERRA coordination