The Consolidated Omnibus Budget Reconciliation Act, more commonly known as COBRA, is a federal law enacted in 1985 that allows eligible employees and their dependents to continue health insurance coverage at group rates in certain instances where coverage might otherwise end, such as job loss, reduction in work hours, or certain life events.

COBRA administrators oversee the tracking and management of healthcare benefits continuity for employees losing access to health coverage due to a qualifying event. This includes notifying participants of their rights via distribution of required notices, processing enrollment, collecting premiums, and maintaining eligibility with insurance carriers.

COBRA Administration involves managing all aspects of an organization’s COBRA compliance. It starts with notifying eligible employees about their rights and responsibilities under COBRA. The administrator then tracks elections, oversees premium payments, ensures the continuation of health coverage with insurance providers, and maintains regulatory compliance and records. In essence, COBRA administration is about ensuring that the organization meets its legal obligations under COBRA and that eligible employees can access their right to continued healthcare coverage.

To start with COBRA administration services through ebm, get in touch with our team. We’ll guide you through our process and discuss your organization’s specific needs.

COBRA coverage is available to employees, their spouses, and dependent children when group health insurance could otherwise be lost due to specific events, known as qualifying events. These include job loss (voluntary or involuntary, except for cases of gross misconduct), reduction in work hours, divorce or legal separation, death of the covered employee, or a dependent child losing their dependent status under the plan.

Eligibility for COBRA benefits extends to employees and their families covered under the employer’s group health plan on the day before a qualifying event occurs. Qualifying events include job loss, reduction in work hours, death, divorce, or a dependent losing their status under the plan. The individual must also be able to continue participation in the group health plan to be eligible.

COBRA applies to all private-sector group health plans maintained by employers that had at least 20 employees on more than 50 percent of its typical business days in the previous calendar year. Both full and part-time employees are counted to determine whether a plan is subject to COBRA.

Non-compliance with COBRA can result in substantial penalties, including excise tax penalties for each violation and an ERISA statutory penalty.

COBRA coverage typically lasts for 18 months or 36 months following the qualifying event. This timeline depends on the type of qualifying event, and may vary based on specific situations and regulatory changes.