Top 10 Mistakes Employers Make with COBRA Administration

Don’t Take COBRA Compliance Lightly

But COBRA noncompliance shouldn’t be taken lightly. When employers don’t maintain compliance, they’re potentially inviting in a mountain of administrative back work to correct their mistakes. And an administrative headache isn’t all that’s at stake…penalties from the IRS and U.S. Department of Labor are possibilities, as well as civil actions from disgruntled participants who have been affected by errors in the compliance process. 

But the good news is that COBRA mistakes—as well as potential fines—are all avoidable with efficient administration processes in place and some COBRA know-how. 

Learn How To Avoid COBRA Mistakes

That’s why, in partnership with our COBRA team, we put together this illustrative, easy-to-read guide, “Top 10 Mistakes Employers Make with COBRA Administration.” Employers can use this eBook as a guide to avoid common COBRA pitfalls like: 

COBRA Benefits Are The Law

While most HR professionals don’t make COBRA administration their full-time job, that doesn’t mean they should let COBRA fall by the wayside. Also known as the Consolidated Omnibus Reconciliation Act of 1985, COBRA is designed to protect employees and dependents who would otherwise lose their coverage due to a qualifying event (loss of employment, reduction in hours, etc.). The law states 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.