Know the lawFamiliarizing yourself with COBRA regulations and definitions is the first step you need to take.
The Department of Labor provides an overview of the federal law as well as FAQs and information on compliance assistance. You also need to check with your state's labor department. Cobrahealth.com provides resources on states' “mini COBRA” laws.
Call in the expertsInstead of handling compliance and administration yourself, outsource COBRA services.
HR outsourcing firms like Ceridian handle millions of COBRA claims, potentially saving you time, resources and worry.
Get off on the right footBy law all new employees need to receive letter informing them of their COBRA rights when they are hired.
Use this sample notification letter from CCH.
Offer a lower-cost alternativeCompanies must offer COBRA coverage if they meet federal and state criteria, but coverage is expensive and you can offer your employees a cheaper option.
Extend Benefits offers the Extend COBRA Alternative Program (CAP) to small businesses as a cheaper option than COBRA.
- Coverage usually ends when coverage under another health plan begins.
- Under the law, children who are born, adopted or placed for adoption with the former employee during the continuous coverage period are now beneficiaries.
- Former employees are not entitled to group term-life insurance under COBRA.