What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time.
Who pays for COBRA?
Employees can be required to pay for COBRA continuation coverage, but the amount charged can’t exceed 102% of the cost of the plan.
What happens if you do not comply with COBRA?
You could face two types of fines:
Tax Penalties: $100 per employee (or family member) for each day of noncompliance
Statutory Penalties: Up to $110 per day
What else should you know about COBRA?
The COBRA coverage election period must be at least 60 days long
Continuation coverage must be identical to the current group plan for active employees and beneficiaries
COBRA continuation coverage is required to extend from the date of the qualifying event for least 18 or 36 months
Coverage can be terminated early if payment is not received within 45 days of election and 30 days after subsequent premium due date
If you need more details on COBRA or have additional questions, please let our team know and we can schedule some time to chat.