Frequently Asked Questions

  1. 1. What is COBRA? - The Consolidated Omnibus Budget Reconciliation Act of 1985, commonly known as COBRA, requires group health plans with 20 or more employees to offer former employees and their dependents continued health coverage for 18 to 36 months after leaving the group.
  2. 2. Who is eligible to receive continued coverage under COBRA? - All employees and dependents that would otherwise lose coverage due to a qualifying event. "Qualifying events" include termination of employment, reduction in work hours, death of the employee, divorce, or a child no longer eligible for standard coverage.
  3. 3. Who pays for COBRA coverage? - Under COBRA, former employees must pay the entire premium charged to their employer. Employers are not responsible for any of their former employee’s health care costs; however, employers must ensure that all administrative procedures are followed.

We understand there may be a variety of questions when offering a new benefit or switching administrators. Take a look at our answers to some of the most frequently asked questions below and reach out to us so we may help be a part of our companies’ solution.

CBS Administrators COBRA Administration

COBRA administration encompasses a number of government-mandated duties, from the initial notification of continued coverage to qualified employees, to generating the expiration notice near the end of the extended benefits period. These responsibilities are subject to frequent changes, and failure to comply with COBRA rules can cost a company thousands of dollars in penalties – and leave it open to lawsuits from former employees.

CBS Administrators is equipped to help your company avoid the potential pitfalls of COBRA noncompliance. We take care of all the details of COBRA administration, leaving you free to concentrate on the issues more important to your business.

CBS Administrators COBRA Services

  • Notifying former employee or dependent of right to continue coverage under COBRA.
  • Supplying all necessary forms to qualified individuals.
  • Billing and collection of premium payments, and distributing payments to the appropriate party.
  • Accurate eligibility tracking.
  • Monitoring COBRA’s requirements for changes, and updating notices and procedures to protect clients from noncompliance penalties.
  • Production of various management reports for the employer.
  • Notifying enrollees and beneficiaries of expiration of benefits prior to end of coverage period.
  • Collected premiums remitted where you designate.

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