About COBRA
Both employers and employees have specific rights and responsibilities regarding COBRA.
Employers
Administering COBRA, and complying with its complex requirements, can be a costly, labor-intensive, and risky process – for you and your HR department. But, it doesn’t have to be. With SelectSource, you’ll get the most efficient and cost-effective COBRA solution in the industry.
To learn more about our comprehensive COBRA services, and get answers to many important questions, just click here.
Employees
If you have one of the “qualifying events” shown in the chart, you’ll have only a limited time to elect continued health coverage under COBRA. But, in making that decision, you need to fully understand how it works and what it means to you.
To get the facts on COBRA, including answers to frequently asked questions, just click here.
To learn about a low-cost alternative to COBRA, offering temporary health insurance for you and your dependents, click here.
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Key COBRA Facts
In 1986, Congress passed the Consolidated Omnibus Budget Reconciliation Act, known as COBRA. This law provides that qualified employees, as well as their spouses and dependent children, can continue their group health insurance (that is, coverage under the employer’s plan) after it would otherwise end. In effect, COBRA gives families a “safety net” when certain events, such as unemployment, divorce, or death, occur.
The following chart shows the “qualifying events” that cause a loss in health coverage, the individuals eligible for COBRA coverage when these events occur, and, in each instance, the maximum coverage period.
|
Person(s) Eligible
for Coverage |
Maximum Coverage Period |
|
Termination of employment
or voluntary resignation
Reduced work hours |
Employee
Spouse
Dependent child |
18 months* |
|
Employee entitled to Medicare
Divorce or legal separation Death of employee |
Spouse
Dependent child |
36 months |
Loss of dependent-child status |
Dependent child |
36 months |
* This period may be extended to 29 months for the entire family, if a COBRA-qualified individual is certified disabled by the Social Security Administration, and the date of disability is before or within the first 60 days of COBRA coverage.
If you're an employer,
click here
to get the facts, and answers
to your questions, about COBRA |
If you're an employee,
click here
to find out how COBRA works and
what you'll need to do to elect coverage. |
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