COBRA Services
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families the right to continue employer-provided group health benefits for limited periods under circumstances such as voluntary or involuntary job loss, reduction in hours worked, change of employment, death, divorce and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost of the plan.
Under COBRA, it is generally required that group health plans sponsored by businesses with 20 or more employees in the prior year offer workers and their families a temporary extension of health coverage, which is called continuation coverage, in certain instances that would otherwise end coverage. How employees and family members may elect continuation coverage is outlined in COBRA, which requires employers and plans to provide notice of available coverage.
The Federal Employee Benefits Security Administration has extensive information about COBRA as well as forms necessary to execute the act and notify employees of their rights under the act.
