COBRA Administrative Services – Because you can’t Afford to be Wrong

Can you afford to see the same headline?

For many employers the liability for failing to comply with continuation coverage regulations can be catastrophic.

The continuation of coverage portion of the Consolidated Omnibus Budget Reconciliation Act, more commonly referred to as COBRA, is one of the most litigated areas of employee benefit plans.

If an employer has 20 or more employees (excluding government plans or church plans) and offers a health plan (which includes group medical plans, dental, vision, flexible spending accounts, health reimbursement accounts and under certain circumstances employee assistance plans and individual health insurance plans), then employers must offer COBRA to all qualified beneficiaries.

Affordable Care Act Does not Negate COBRA Requirements for Employers:

Employers must still offer COBRA coverage.  In fact, the new healthcare law has added to the complexity of COBRA Administration due to the  coordination that may be required between the employer-sponsored health plan and the Health Insurance Marketplace.  The Health Insurance Marketplace plans will be another option for COBRA eligible individuals to consider, but as noted in the following slide share, COBRA will still be needed by some individuals.