COBRA

Why Outsource Your COBRA?

COBRA Administration is time intensive and highly regulated. Employers find it difficult to administer the COBRA regulations and to maintain the necessary documentation and records.

Our systems and our staff’s expertise, training and continuing education allows us to provide our clients with personalized customer service to make COBRA administration easy for you.


What Is COBRA?

In 1986, Congress enacted continuation of health care coverage requirements, commonly referred to as COBRA. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act and was designed to protect certain employees and their dependents when they experience a loss of coverage under a group health plan.

If your company employed 20 or more employees during at least 50% of your typical business days during the preceding calendar year, then you must comply with the federal COBRA law.

COBRA provides continuation of health coverage that otherwise would have been terminated due to certain qualified events. Employers are required to offer COBRA to employees and their eligible dependents when they lose coverage due to certain qualifying events, including:

  • Initial COBRA Notice
  • Qualifying Event Notification
  • Open Enrollment Notices

  • Plan/Benefit Changes
  • Conversion Rights Notices
  • Cal-COBRA and other State Mandates


COBRA Time-Frame Requirements

In addition to the varying lengths of time that COBRA Coverage may be extended (from 18 months to 36 months), COBRA has specific time-frame requirements for the notifications, election periods and coverage, including:

Employer to Report the Event to the Plan Administrator … 30 Days
Plan Administrator to Notify Qualifying Beneficiaries … 14 Days
Qualified Beneficiaries to Elect COBRA Coverage … 60 Days
Initial Premium Payment Grace Period … 45 Days
Monthly Premium Grace Period … 30 Days