By Mark Thompson
The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides employees and their families the ability to maintain health benefits for a limited amount of time if they have specific life events that would otherwise cause them to lose coverage.
Here are a few common questions and answers related to COBRA
Q) Does this apply to my business?
A) If you offer a group health plan and have 20 or more employees you are most likely subject to COBRA regulations. (Certain states have similar laws that may affect employers with fewer than 20 employes.)
Q) As an employer, do I still pay my portion of the health insurance if an employee elects COBRA coverage?
A) No. Employees electing COBRA may be required to pay the entire premium for coverage.
Q) Who is eligible for continuation coverage under COBRA
A) In order to elect COBRA your health plan must be covered by COBRA; there must have been a qualifying event; and you must be a covered beneficiary affected by that event.
Qualifying events for Employees include:
For spouses and dependent children of covered employees: