However, there are a few exceptions. Federal government plans and certain church plans are not subject to COBRA. Small employers are also exempt, but one needs to be careful when determining its size.
Author Archive | Shelley Holp
As a COBRA third party administrator, two of the most common questions we hear are “What is COBRA” and “Why is it so expensive?”
FSAs are a COBRA eligible benefit. By definition health FSAs are a Group Health Plan and regulations require COBRA to be offered to benefits categorized as a group health plan. However, the obligation to offer COBRA depends on a number of factors.
Did you know that one of the most important COBRA notices is the “initial notice” or what is referred to as the “general rights notice”? Properly providing this notice is frequently overlooked by employers or the method of delivery does not meet COBRA compliance regulations.
Considering an $84,385.17 potential fine for one missed mailing, are you sure you mailed all your COBRA notices? Perhaps it is worth double checking. And the most important question of all, do you have records to prove your notices were mailed?
An Employer’s risk could potentially increase when an Employer puts itself between the insurance company/stop-loss provider and the former employee particularly in a case where a premium is not paid on a timely basis.