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Do small groups have to offer COBRA?

Answer: It depends. It is true that, under federal law, there is no requirement for small employers to offer COBRA coverage. While federal COBRA regulations exempt employers with fewer than 20 employees, states may enact provisions that expand the COBRA requirements.

Who is not subject to COBRA?

Employers who employed 20 or more employees on more than 50 percent of the business days in the prior calendar year are subject to COBRA. Small-employer plans, church plans and governmental plans are not subject to COBRA.

Who is subject to Cal-COBRA?

Cal-COBRA applies to employers and group health plans that cover from two to 19 employees. (Note that Cal-COBRA also applies to employers with more than 20 employees when an employee has exhausted his or her 18 months of federal COBRA benefits.)

Are all employees entitled to COBRA?

COBRA generally applies to all group health plans maintained by private-sector employers (with at least 20 employees) or by state and local governments.

Can COBRA notices be emailed?

In addition, employers can provide COBRA notices electronically (via email, text message, or through a website) during the “Outbreak Period,” if they reasonably believe that plan participants and beneficiaries have access to these electronic mediums.

What happens if my employer doesn’t offer me COBRA?

Failure to provide the COBRA election notice within this time period can subject employers to a penalty of up to $110 per day, at the discretion of the court, as well as the cost of medical expenses incurred by the qualified beneficiary.

Are churches exempt from COBRA?

Also, the federal government’s group health plan is not subject to COBRA. However, a separate law—The Federal Employees Health Benefits Amendments Act of 1988—requires the federal government to provide continuation coverage. Church plans are exempt from COBRA’s requirements.

Are self insured plans subject to COBRA?

Indemnity policies, PPOs, HMOs, and self-insured plans are all eligible for COBRA extension; however, federal government employee plans and church plans are exempt from COBRA. Individual health insurance is also exempt from COBRA extension.

What makes you eligible for COBRA?

COBRA covers group health plans only when sponsored by an employer who has at least 20 employees. Additionally, the employees must have been employed for more than 50% of the business days the previous year. COBRA must cover your group health plan. You must be a beneficiary that is qualified for the specific event.

Who is responsible for sending COBRA notice?

As an employer, you are responsible for notifying your former employee of the right to elect COBRA continuing health care coverage under your group plan. Most employers will include COBRA coverage information in the business employee handbook and as part of an employee’s exit paperwork.

Can COBRA be denied?

Under COBRA, a person who has been terminated for gross misconduct may be denied COBRA. Gross misconduct is not specifically defined by COBRA, but when based on an employer’s practice or policy it could include misrepresentation during the hiring process or falsifying information on a Form I-9.

What kind of employer is eligible for Cobra?

COBRA generally applies to all private-sector group health plans maintained by employers that had at least 20 employees on more than 50 percent of its typical business days in the previous calendar year.

What do you need to know about Cobra?

COBRA Notice and Election Procedures . Under COBRA, group health plans must provide covered employees and their families with specific notices explaining their COBRA rights. Plans must also have rules for how COBRA continuation coverage is offered, how qualified beneficiaries may elect continuation coverage, and when it can be terminated.

When to give Cobra notice to Group employees?

Group health plans must give each employee and spouse a general notice describing COBRA rights within the first 90 days of coverage. Group health plans can satisfy this requirement by including the general notice in the plan’s summary plan description and giving it to the employee and spouse within this time limit.

Who is in charge of COBRA continuation coverage?

COBRA continuation coverage laws are administered by several agencies. The Departments of Labor and the Treasury have jurisdiction over private-sector group health plans. The Department of Health and Human Services administers the continuation coverage law as it applies to state and local government health plans.