Human Resource Blog

COBRA

	Benefits
Total Compensation Summary Performance Improvement Plan Performance Appraisal and Review Employee Payroll Status/Change Form Employee Change Form

How should I submit Cobra paperwork to an employee who is being terminated.

This is a complex topic, but we’ll try to cover the highlights. There are three parties involved here: the employee, the employer and the insurance plan administrator. In some small companies, the insurance plan administrator may be the HR person or the employer, but this is becoming less common.
The employer must notify the plan administrator within 30 days that an employee is entitled to COBRA coverage due to death, termination, reduced hours of employment or eligibility for Medicare.
The employer may be unaware of some qualifying events under COBRA, such as divorce, legal separation or the birth of a baby. In that case, the qualified beneficiary must notify the plan administrator within 60 days.
Once the plan administrator is notified, he or she must send the plan participant and beneficiaries a COBRA notice within 14 days. The participant or beneficiary has 60 days to decide whether to accept COBRA coverage. If they do elect to sign up for COBRA, they have 45 days to pay the first premium.
Plan administrators usually send COBRA notification through the mail. Many elect to send it certified, with a signature required, as proof of delivery. For larger companies, a service that administers COBRA can save time and money.
Learn more about COBRA from the US Department of Labor at: http://www.dol.gov/dol/topic/health-plans/cobra.htm