COBRA compliance isn’t about what you did; it’s about what you can prove you did. If a lawsuit is ever brought against your company, the only way to keep from paying penalties and fines is having documented proof of what occurred.
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COBRA is the acronym for The Consolidated Omnibus Budget Reconciliation Act of 1985. This act was passed to temper the increasing rate of uninsured Americans.
“What’s in a name?”
It goes by several different names: Specific Rights Notice, Qualifying Event Notice, Election Notice, COBRA Offering Packet and more. Regardless of which name you use, the rules and regulations are the same, and the fines for not following those rules are costly.
The Overlooked COBRA Notice
Did you know that one of the most important COBRA notices is the “General Rights Notice” or what is referred to as the “Initial Rights Notice”? Properly providing this notice is frequently overlooked by employers or the method of delivery does not meet COBRA compliance regulations.
FSAs and HRAs Don’t Count for COBRA, Right?
To avoid incurring fines and penalties and remain in compliance, the Department of Labor states that COBRA should be offered to any benefit defined as a group health plan. By definition this includes all HRAs and FSAs.
Headcounts Matter
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.
Can you guess the two most common COBRA questions?
As a COBRA third party administrator, two of the most common questions we hear are “What is COBRA” and “Why is it so expensive?”
The COBRA Initial Notice – Are You Compliant?
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.
Is COBRA Still Relevant Under the ACA?
The Affordable Care Act (ACA) changed a lot of things about the health insurance market in the United States. Among them: It granted some more options to those who had pre-existing conditions but who lost their access to a workplace plan because of job loss, layoff, benefit reduction or divorce.
myCobraPlan All Access Broker Portal – Access When You Need It!
myCobraPlan – We’ve designed our Broker Portal to give you quick access to all your Client’s COBRA records in one place.
