Do companies need to offer COBRA to employees?

Do companies need to offer COBRA to employees?

Employers with twenty or more employees (full-time and part-time both included) are legally responsible to offer COBRA coverage. The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees and any enrolled family members who lose their health benefits the ability to choose to continue health, dental, and vision benefits provided by their group under circumstances such as voluntary or involuntary job loss, hour reduction, death, divorce, and other qualified life events.

Employees have 60 days to enroll in COBRA coverage and it can last up to 18 months from the continuation of benefits. In most cases, the employer will no longer contribute to the cost and the employee will be 100% responsible for entire premium if they decide to stay enrolled. The company’s benefit administrators or the insurance carrier usually provide the COBRA letter to employees.

If you are unsure if a COBRA letter is sent directly to your employees, please click here to contact your benefit administrators.

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