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What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a Federal law that was enacted in April 1986. The law requires that employer groups of 20 or more provide for temporary health, dental and/or vision coverage for employees and/or their eligible dependents after a qualifying event has occurred. A qualifying event includes termination of employment, reduction in work hours, divorce or legal separation, employee’s death, an employee’s entitlement to Medicare benefits, or a dependent’s loss of coverage due to ineligibility.
It is the employer’s responsibility to provide accurate information to employees concerning the availability of COBRA benefits. Due to the fact that the rules for COBRA are complicated, as well as continuously changing, it is burdensome for employers to self administer. Furthermore, penalties against employers for noncompliance can be extremely expensive. Through Choice COBRA, you are relieved of the day to day responsibility of COBRA administration.
*COBRA, HIPAA and FMLA administration is provided by COBRA Administration and Health Services, Inc. (CAHS) under the Choice COBRA brand name. The service contract for these services is between the employer and CAHS.
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