COBRA is probably one of the most difficult laws for employers and employees to understand. The Consolidated Omnibus Reconciliation Act of 1986 mandates that employers who offer group health insurance allow employees to continue their medical insurance coverage after an employee or dependent is no longer eligible to stay on the plan. California has a complimentary COBRA system, referred to as Cal-COBRA. Cal-COBRA extends the Federal group health insurance protections to companies with 2 to 19 employees. Federal COBRA only applies to companies with 20 or more employees. CalCOBRA also extends the beneficiary period to 36 months for all qualifying events. Participants must pay 110 percent of the premium under California COBRA versus 102 percent under COBRA. COBRA defines the situations under which an employee or dependent is eligible to continue health insurance coverage. COBRA requires employers to send out notifications of eligibility after certain "qualifying events," such as termination of employment, divorce, overage dependent child. COBRA specifies the number of days in which the employer must sent out the "qualifying event notices," and the number of days in which a "qualified beneficiary" has to "elect" COBRA coverage. It is VERY complicated and the penalties are severe for an employer who messes up. So, what delight to discover that the Federal government has finally, after nearly 20 years, written guidelines for employers to comply with COBRA. In September 2004 the U.S. Department of Labor, Employee Benefits Security Administration published the Employer's Guide to Group Health Continuation Coverage under COBRA. This easy to read document helps employers make sense of this complicated Federal law. The DOL EBSA web site is full of other useful information regarding COBRA compliance. One of the useful items on the DOL EBSA web site is the model general notice for single employer health plans. Employers can use this document to notify qualified beneficiaries of their rights and not risk loosing a law suite for improper notification. |
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California Health Insurance |
Group Health Insurance in California |
Health Savings Accounts | |
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