Overview: Group health plans sponsored by employers with 20 or more employees are required to comply with the Consolidated Omnibus Budget Reconciliation Act (COBRA). In general, COBRA provides continuation of health care coverage for employees and their beneficiaries who would otherwise lose coverage due to certain qualifying events.
Group health plans are required to provide workers and their families with a notice of their COBRA rights and are also required to have procedures in place for how COBRA coverage is offered, how coverage can be elected and how coverage can be terminated. Even though COBRA has been around for over 25 years, its confusing and complex requirements still result in frequent errors.
Some of the more common errors include:
Trends: In light of the US Supreme Court's decision striking down section 3 of the federal Defense of Marriage Act (DOMA), employers must extend COBRA coverage to an employee's same-sex spouse if the couple lives in a state that recognizes same-sex marriage. The number of states that recognize same-sex marriage is continuing to grow, with rulings addressing the legality of same-sex marriage pending in several states.
Author: Tracy Morley, SPHR, Legal Editor
Updated to reflect IRS guidance on rolled over unused amounts in health flexible spending accounts and how such amounts affect COBRA premiums.
This How To maps out the steps an employer should follow in order to properly pay an employee who has separated, or has been involuntary terminated, from employment.
Employees and their spouses must receive a general notice of rights under the Consolidated Omnibus Budget Reconciliation Act (COBRA) within 90 days of the beginning of group health plan coverage.
Qualified beneficiaries must receive a Consolidated Omnibus Budget Reconciliation Act (COBRA) election notice within 44 days of a qualifying event.
The US Supreme Court's legalization of same-sex marriage nationwide allows all legally married same-sex couples - regardless of where they live or got married - to be eligible for spousal leave and other benefits available to heterosexual spouses.
Various amendments to Oregon's health care benefits and health care continuation coverage laws took effect in June.
This chart helps employers understand each state's health care continuation coverage requirements. These so-called "mini-COBRA" laws cover smaller employers or may otherwise provide greater rights than the federal Consolidated Omnibus Budget Reconciliation Act (COBRA).
In-depth review of the spectrum of Oregon employment law requirements HR must follow with respect to health care continuation (COBRA).
In-depth review of the spectrum of Colorado employment law requirements HR must follow with respect to health care continuation (COBRA).
HR Guidance on complying with COBRA laws and regulations.