The Employer's Quick Guide to Getting COBRA Right

Staying On Top Of COBRA Can Be Difficult

When it comes to the Consolidated Omnibus Budget Reconciliation Act (COBRA), you want to be sure you’re on top of the who, what, where, when, and why as an employer. Even more, when your HR and benefits managers wear a lot of hats as they so often do, the ability to stay on top of day-to-day COBRA requirements can prove to be challenging.

You’re not alone. It’s easy (and fairly common) for things to fall through the cracks. What (unfortunately) results is a slew of penalties that can be costly. There are IRS excise tax penalties that can stem from an audit and ring up to $100 per day, per qualified beneficiary, for each COBRA violation (capped at $200 per day). Then there is the prospect of civil fines under ERISA (Employee Retirement Income Security Act), which can add up to $110 per day, per qualified beneficiary, per violation (uncapped). Additionally, a federal court may award damages and attorney fees in certain scenarios.

A fine isn’t “fine.” Get in the know with our COBRA guide

With information sourced from ConnectYourCare’s dedicated team of COBRA compliance and COBRA administration experts, our illustrative guide is chock full of quick tips and detailed explanations for employers, including:

Who’s covered
What benefits do and don’t qualify
When to notify
Where continuations come into play
Why third-party administration may be considered

We also cover some of those trickier topics that employers often find confusing. For instance, did you know that when counting full-time employees, you have to count part-time employees, too? Sounds crazy, right? In short, it’s not just a simple headcount. We include how to tally up both full- and part-time employees to determine if your plan is subject to COBRA inside this guide!