In 1986, Congress passed the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA was implemented to continue group health coverage requirements, out of concern for individuals that lost their coverage when they lost their job. COBRA regulations require employers with 20 or more employees or the full time equivalent as defined by law and based on the amount of hours paid in the prior year of wages to allow individuals to continue their group health coverage, based on certain qualifying events. The employee may choose to continue medical, dental and vision benefits offered by the current plan(s), of which the employee or employees enrolled eligible dependants had been previously covered.

Qualifying Event:
COBRA continuation must be offered to eligible employees and their dependents, if coverage would otherwise be lost due to:

• Voluntary or involuntary termination of employment for reasons other than "gross misconduct"
• Reduction in the number of hours of employment
• Covered employee's that become entitled to Medicare
• Divorce or legal separation of the covered employee
• Death of the covered employee
• Loss of "dependent child" status under the plan rules

OUR COBRA COMMITMENT TO YOU?
With the constantly changing rules and regulations surrounding COBRA, our commitment to our clients to is provide full service administration for all your COBRA needs at no cost to you.  We believe strongly that this is type of service is an essential part of helping ease your company’s administrative duties.  Equally as important is the fact that this would keep your company compliant and help avoid potential costly litigation.