In recent weeks, we gave you a quick rundown of COBRA and passed along the skinny on COBRA penalties—complete with a checklist of all the documentation you need to jumpstart and maintain COBRA compliance. But we’re not finished yet!
We joined forces with our COBRA Administration team to create a quick guide: “Top 10 Mistakes Employers Make with COBRA Administration.” This illustrative, easy-to-read guide can be your survival tool to help you navigate some of the trickier parts of COBRA regulations and administration.
Before you dive into the guide, test your knowledge below:
Mini Pop Quiz!
Which of the following scenarios are against COBRA regulations?
A
Leaving a terminally-ill qualified beneficiary on the health benefits plan beyond the allowed time frame.
B
Providing a secondary option for benefits just for COBRA enrollees, one that’s different from what active employees are offered.
C
Not sending COBRA participants open enrollment paperwork during the annual benefit election period.
Is it A, B or C?
(Hover for Answer)ANSWER:
ALL OF THE ABOVE!
Here’s why:
A: No matter the situation, there are minimum and maximum timeframes for coverage that must be offered, although employers can choose to offer other benefits not covered under COBRA for an extended time.
B: Sometimes, employers ask if they can add a secondary health benefit plan to cover just their COBRA enrollees, and leave their other employees on the original plan. This also is against COBRA guidelines; any health benefits offered to active employees must be offered to COBRA participants using the same plans.
C: The last rule that’s often broken is not sending COBRA participants open enrollment paperwork. When you enter into your open enrollment period, your COBRA participants are also eligible for the same options, rates, and programs for the COBRA-eligible benefits. They are afforded the same opportunity, and likewise, any cost changes that come with the new enrollment plan period are passed through to the COBRA participants.
So how’d you do? There are a lot of details to consider. We cover the above, and much more, in the full guide. Click the button below to get it for yourself—or brokers, for your clients!
