Understanding COBRA Compliance
COBRA is one of those words that can make employers and HR managers nervous—but it doesn’t have to be complicated. This week, let’s break down what COBRA is, who it applies to, and how to stay compliant.
What Is COBRA?
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. It’s a federal law that requires employers to offer continued health coverage to employees (and their dependents) when certain qualifying events occur, like a job loss or reduction in hours.
Who Does COBRA Apply To?
COBRA generally applies to employers with 20 or more employees who offer group health insurance. If you have a smaller group, some states have their own ‘mini-COBRA’ rules that may still apply.
Common Qualifying Events
Termination of employment (voluntary or involuntary, except for gross misconduct)
Reduction in work hours below eligibility requirements
Divorce or legal separation
A dependent child aging out of the plan
Employer Responsibilities
Provide timely COBRA election notices when a qualifying event happens.
Keep accurate records and track deadlines.
Administer premiums and coverage according to COBRA rules (typically up to 18 or 36 months, depending on the situation).
Staying Compliant
COBRA can get tricky, but working with a good benefits administrator or using a tool like Employee Navigator can help you stay organized and compliant. Missing deadlines or mishandling notices can result in penalties.
For more information contact the Frost / Beck Insurance Agency. Call us at 419-592-4476, send an email to frost@frostins.com, or click here to submit your request today! Or, stop by and see us at one of our four convenient locations in Archbold, Napoleon, Holgate, or Whitehouse.
Ross Durham is a licensed Group Health Insurance Advisor at Frost Insurance Agency. Frost Insurance has four convenient locations in NW Ohio in Napoleon, Archbold, Whitehouse, and Holgate. Contact Ross for your Group Health Insurance needs.
Coming Next Week: We’ll break down how to handle life event changes and why they matter for your benefits plan.
