The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that requires certain employers to offer continued healthcare coverage to employees and their dependents after a qualifying event such as termination, reduced work hours, or other changes in employment status.
For employers, COBRA compliance is essential to avoid legal penalties and ensure departing employees have access to continued health coverage. This guide explains COBRA requirements, eligibility rules, employer responsibilities, and best practices for compliance.
- What is COBRA?
- Which Employers Must Offer COBRA?
- How to Count Employees for COBRA Eligibility
- Who is Eligible for COBRA?
- Employer Responsibilities Under COBRA
- COBRA Compliance & Penalties for Employers
- Final Thoughts: Managing COBRA Compliance Effectively
- Frequently Asked Questions About COBRA for Employers
- Read More about Compensation & Benefits
What is COBRA? #
COBRA is a federal law that requires group health plans to offer temporary continuation of health coverage to employees and their dependents after a loss of job-based insurance due to specific qualifying events.
COBRA allows former employees and their covered dependents to remain on their employer-sponsored health plan for a limited period by paying the full premium cost, plus an administrative fee.
Key Takeaway for Employers: COBRA does not require employers to pay for coverageโbut it does require them to offer the option to eligible individuals.
Disclaimer #
The information on this site is meant for general informational purposes only and should not be considered legal advice. Employment laws and requirements differ by location and industry, so itโs essential to consult a licensed attorney to ensure your business complies with relevant regulations. No visitor should take or avoid action based solely on the content provided here. Always seek legal advice specific to your situation. While we strive to keep our information up to date, we make no guarantees about its accuracy or completeness.
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