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Continuation Programs
COBRA
The Consolidated Omnibus Budget Reconciliation Act of 1985, commonly referred to as COBRA, provides protection for certain former employees and their dependents by giving them the right to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances, such as:
- Voluntary or involuntary job loss
- Reduction in hours worked
- Transition between jobs, death, divorce, and other life events
COBRA was enacted in an effort to combat the inconsistencies inherent in state benefit continuation laws and to create more uniform requirements on the federal level. In practice, however, the quickly enacted legislation created an administrative nightmare for employers as they attempted to navigate the labyrinth of complex statutory requirements.
Subsequent legislation, administrative guidance and court decisions have been issued to clarify and, in certain respects, expand COBRA’s requirements. Additionally, most states have adopted legislation that impacts certain aspects of coverage continuation rights. Ensuring that requirements of both federal and state mandates are met can be confusing, if not overwhelming, and penalties can be substantial. As a result, more and more employers are looking for alternatives to self-administration. This is where Acclaim Benefits delivers.
Acclaim Benefits Delivers
COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice. Acclaim Benefits provides a wide range of administrative services to ensure COBRA compliance:
- All COBRA required notices and tracking
- General notices
- Qualifying event notices
- Rate and benefit change notices
- Payment shortfall notices
- Notice of unavailability
- Termination notices
- Election packet
- Payment coupons and reminders
- Coordination with carriers
- Eligibility communication
- Management of COBRA elections and premium payments
- HIPAA certificate of creditable coverage (if applicable)
- Regulatory updates
Our COBRA staff is certified through HRcertification for COBRA administration.