COBRA Compliance & Administration
The Consolidated Omnibus Budget Reconciliation Act, more
commonly known as COBRA, is a federal regulation that requires
employers to offer employees the right to continue group health
coverage following termination or other qualifying event.
As an employer, you may be required to offer COBRA coverage if
you offer group health plans and you had twenty or more
employees (or equivalents) in the previous calendar year.
When not managed properly, employers are exposed to:
- IRS excise tax
- ERISA penalties
- Litigation and more
Working with a COBRA administration partner can help you:
- Reduce administrative burden
- Avoid severe consequences that can affect the organization’s
The benefits of outsourcing COBRA are clear. In addition, the 2%
administration fee charged to participants can generally offset the
cost of outsourced plan administration.