cobra administration

COBRA Administration

If you own a business or are responsible for running a business, then you probably know that you may need to lay off or even terminate employees at times, which generally means separating them from your group health insurance plan.

If you have full time employees or even contractors in some cases, you may be responsible for allowing them to continue on your health insurance plan via COBRA.

What is COBRA Administration?

COBRA administration covers the responsibilities that you have as an employer to provide COBRA coverage for employees who were terminated or laid off from your company.

COBRA stands for “Consolidated Omnibus Budget Reconciliation Act” and this legislation was designed to provide continuing healthcare coverage for employees and their families after job loss or other qualifying event.

Why Do You Need COBRA Administration?

If you supply health insurance to your employees through a group health insurance plan, then you need COBRA administration as well.

If you are a business owner or employer subject to COBRA regulations, then you must provide COBRA benefit coverage to qualified beneficiaries.

Qualified COBRA beneficiaries include full time employees as well as part time employees who participated in your health care plan, the spouses and dependents of those employees, and partners in a partnership if applicable.

Sound complicated?

That’s where COBRA administration policies can help you cover these individuals and manage their benefits.

How Do You Choose the Right Type of COBRA Administration?

Your insurance agent can help determine what type of COBRA administration coverage best suits your needs depending on the size of your company and the number of employees covered under your group health insurance plan.

What Are the COBRA Rules for Employers?

There are certain essential rules that employers who provide group health insurance and therefore fall under the COBRA mandates must follow.

COBRA rules generally apply to group health plans that are held by private sector companies with twenty or more employees at a time during at least fifty percent of the previous calendar year.

If this description applies to your business, then you are required to offer temporary continuation of benefits under COBRA laws.

Keep in mind that as an employer, when you lay off or terminate an employee, you have a limited amount of time to send a COBRA notice, which allows the former employee to decide if they would like to maintain continuing COBRA coverage or not.

After that, you have a specific timeframe to provide that individual or individuals with a COBRA general notice, which details that person’s rights and obligations under COBRA.

What Other Types of Insurance Are Related to COBRA Administration Insurance?

Any type of group health insurance, dental insurance, and vision insurance can be provided via COBRA coverage.

Contact an ASCO Insurance specialist to learn more about COBRA administration.