What is COBRA?BASIC COBRA administration complies fully to the regulations as established by the EBSA (Employee Benefits Security Administration). BASIC COBRA establishes and maintains full compliance. However, we do so in such a manner that the ease of use for the employer is maximized. It gets better. We, at the same time, dramatically reduce the demand on the employer to communicate to their administrator. We ask you to do less and we make the little you need to do even easier. EBSA is a division under the DOL (Department of Labor). The following paragraph was taken from this administration's “Frequently Asked Questions about COBRA Continuation Health Coverage.” What is COBRA Continuation Health Coverage?
Congress passed the landmark Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions in 1986. The law amends the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Service Act to provide continuation of group health coverage that otherwise might be terminated. What does COBRA do?
COBRA provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. This coverage, however, is only available when coverage is lost due to certain specific events. Group health coverage for COBRA participants is usually more expensive than health coverage for active employees, since usually the employer pays a part of the premium for active employees while COBRA participants generally pay the entire premium themselves. It is ordinarily less expensive, though, than individual health coverage.” In concept, COBRA is relatively simple and straight forward. It simply grants the right for qualified employees and their families to retain the employer’s group health coverage by paying the premium at group rates for specific time periods. In execution and application, COBRA is exceedingly complex. Download a detailed overview of the major provisions of COBRA written by the U.S. Department of Labor.
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Contact our COBRA department.
877-COBRA02
877-262-7202
cobra@basiconline.com
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