COBRA – Federal & Minicobra-coverage

COBRA gives employees the right to continue group health insurance after a loss of work, regardless of whether they are fired, quit, or experience reduced hours, as long as they are able to continue paying premiums.

  • For most people, COBRA coverage can last for up to 18 months. Some people may be able keep it a few months longer.
  • For employers, COBRA can be a complex law with unique administrative challenges.
  • Severe penalties for non-compliance place employers at risk if they are unable to manage the administrative process in accordance with ever-changing COBRA regulations.

At Benefits Network, we provide administrative services for COBRA /State Continuation Services, eliminating the hassle and risk for employers and allowing our clients to focus on their businesses.

Want to learn more? Contact Benefits Network today!

What is COBRA?

COBRA, the Consolidated Omnibus Budget Reconciliation Act, became a law in 1986. COBRA gives workers and their families the right to continue group health benefits for limited periods of time under certain circumstances, including voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.

Qualified individuals are required to pay the entire premium for coverage up to 102 percent of the cost to the plan.

COBRA generally applies to employers with 20 or more employees in the prior year who offer group health plans.

What Group Health Plans are subject to COBRA?

The law requires employers with the equivalent of 20 or more employees, employee organizations, and state or local governments to offer COBRA health care continuation.

Employers with less than 20 employees are not subject to COBRA under federal law, although many states require insurers to extend mini COBRA coverage to eligible former employees and dependents.

State Laws (Mini COBRA)

State COBRA expansion programs (sometimes referred to as Mini COBRA) extend coverage to employees in firms with fewer than 20 workers who are not covered by the federal law.

Coverage under these state continuation programs may differ in duration, restrictions, and eligibility from the coverage provided to workers under state law.

Contact Benefits Network today! Let us help you understand the ins and outs of COBRA for your business and your employees.