COBRA Administration

Federal regulations require that health coverage be offered to former employees for a specified period of time, raising important compliance issues for employers. Our automated system is designed to handle all these COBRA requirements and regulations.

Federal Government Extends COBRA Subsidy

The 2010 Department of Defense (DOD) Appropriations Act, which was approved on Dec. 19, 2009, maintains a 65 percent temporary federal government subsidy of COBRA premiums for qualifying health plan members while extending both the time frame for a COBRA qualifying event and the subsidy period for assistance-eligible individuals. The subsidy was introduced as part of the economic stimulus package signed by President Obama in February 2009. Contact us with any questions or to request assistance.

Important Changes For COBRA Coverage And Administration

On March 2, 2010, the Temporary Extension Act was signed, extending the subsidy from February 28, 2010, to March 31, 2010. On April 15, 2010, President Obama again signed an extension to the legislation surrounding the COBRA subsidy program, which now extends until May 31, 2010.

These Acts revise ARRA to clarify that individuals who did not make or who discontinued a COBRA election on the basis of a reduction in hours that occurred at any time from September 1, 2008 through May 31, 2010 and who subsequently experience an involuntary termination of employment from March 2, 2010 through May 31, 2010, are entitled to a special election of COBRA based on the involuntary termination of employment.

Learn more about eligibility criteria, how income affects the subsidy, employer notification requirements and employer reporting standards.