Is your organization COBRA compliant? If you’re not sure, or feel like you could use a little assistance, our COBRA compliance checklist can help you compile the necessary information you need to maintain a compliant environment. Here’s why this topic should not be put on the back burner:
The Consolidated Omnibus Budget Reconciliation Act (COBRA), established in 1985, mandates that employers who offer health care benefits and have 20 or more employees for at least 50% of the preceding calendar year must provide the option to continue coverage if an employee experiences a qualifying event.
Over the course of four decades, COBRA compliance has proven to be a complex subject for organizations large and small. Benefits administrators and human resources personnel representing these businesses are tasked with the very heavy responsibility of carrying out COBRA and following all associated processes to the letter of law.
What’s more, COBRA administration is just one aspect of their jobs. Since HR personnel commonly wear many hats in managing employees across all stages—those coming in the door, those currently on payroll, and those going out the door—COBRA can oftentimes be overlooked or deprioritized in the grand scheme of a company’s overall HR and benefits landscape. When COBRA obligations slip through the cracks like this (as it so commonly does), foundational compliance weakens, leaving a business vulnerable and at risk for costly fines should an audit arise.
Indeed, COBRA administration and compliance is tricky business. But the truth is, most compliance issues can be avoided when companies are readily prepared with the right information. It is important to stay vigilant on COBRA news and legislation, have internal procedures to follow, and understand critical timelines as they pertain to employee communications and the involvement of a third party administrator.
To help employers avoid fines and maintain a compliant environment, ConnectYourCare has created a complimentary COBRA compliance checklist, constructed straight from the proven practices of our COBRA operations team.