The Consolidated Omnibus Budget Reconciliation Act of 1986, or COBRA, allows an individual to retain their health insurance provided by their group health plan for a certain amount of time after they are no longer employed, or considered an eligible member by the company providing the benefit plan. These circumstances may include: a reduction in their total number of work hours, various life changing events, voluntary loss, or involuntary loss of their employment. The individual is required to pay for up to 102% of the total cost of the plan, which is maintained at the group rate.

COBRA requires a company that provides a group health plan of twenty or more members in 50% of a prior work year to offer the plan members, and their families, an extension of their benefits. The employer, or plan administrator, is required to give notice in writing or certified mail to the employee within 14 days of their eligibility date. The member then has an election period of up to 60 days to respond to the notice in writing. The employee then has 45 days from the election to remit the first payment to the employer for the prior month’s premium, and the current months as well. The continuation of benefit period will remain in effect for 18 months as long as the member continues to make payments to the plan. Individuals and their families may also be eligible for an 18 month extension of the continuation period based on certain circumstances.

United Benefit Solution will support the employer, and employee with all forms and notifications needed during the entire COBRA transition period.