COBRA is a federal law that requires employers with 20 or more employees to offer continuing coverage to individuals who would otherwise lose their health benefits due to termination of employment, reduction in hours or certain other events. So, what is the employers responsibility when it comes to COBRA coverage?
Employer responsibilities in COBRA stresses consistent communication to the employee, specifically about their right to continue benefits when a qualifying event may occur.
Require COBRA Communications:
- Covered employees and their dependents must be notified of their rights under COBRA when they first elect their employee health benefits plan.
- Covered employees must be notified of their election rights to continue employee health benefit coverage after a qualifying event occurs.
- Within 30 days the employee health insurance the plan administrator must be notified of a qualifying event. The plan administrator has 14 days to notify the COBRA coverage eligible individual.
After the notice has been sent to the qualifying employee they have 60 days to elect coverage. If you do not hear from the employee within the 60 day period they will no longer be eligible.
Discuss Your COBRA Options With Benafica
Remaining compliant with COBRA administration can be complex, by working with Benafica you will remain current and compliant with changing regulations. Contact us today if you have questions or are not currently utilizing our COBRA administration services.
To learn more about how we can help you, feel free to schedule a free consultation or call our St. Paul office today at 651-287-3253. You can also get in touch with us via our contact form, and a representative will reach out to you promptly.