A COBRA-eligible employer is an employer who has sponsored a group health insurance plan (health, dental, or vision) and who employed 20 or more full or part-time employees on at least 50% of its typical business days during the preceding calendar year. Part-time employees count as fractions, so the calculation can be intimidating.

As the employer, you must notify the employee of his COBRA rights within 14 days of loss of coverage. The employee has sixty days from the loss-of-coverage date in which to elect coverage. There can be no break in coverage between plans. Generally, qualified beneficiaries are eligible to continue COBRA benefit for 18 months, longer if disabled, and, for purposes of insurance, are accorded the same rights as your actively at work employees. COBRA beneficiaries "follow" your group plan until they exhaust their benefit or move onto another employer plan.

Every employer who is required to offer COBRA coverage to employees should have a compliance policy in place. Without it, you face the possibility of fines and civil liabilities. COBRA compliance is a mandatory part of your benefits administration, and we can help you. Due to the nature of COBRA for self-insured, large group plans, we limit our compliance services to employers from 20 to 150 employees, with fully-insured plans only.

COBRA audits are becoming increasingly popular with the IRS. We can provide you with cost-effective COBRA compliance, including COBRA policy, initial notice, notice of COBRA rights after the qualified event, ongoing service and support, and adequate recordkeeping. We have all of the required documentation in-house, so that all you have to do is properly notify us and we will handle everything.

Special rules for notification may apply to dependents of qualified beneficiaries. There are grace periods and other rules that employers may need to be aware of. If you have fewer than 20 employees, you may likely qualify for continuation of coverage requirements in your state. Click here for more information on Colorado rules.

Like more information about COBRA in Colorado & Wyoming? Email us at COBRAinfo@viehdorfer.com

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