COBRA Terminology
This federal law applies to any employer with 20+ employees. It allows employees to continue certain benefits they had while actively working.
What is COBRA?
This is the maximum amount of time a former employee can be on COBRA, without the disability extension.
What is 18 months?
102%
What is the total cost you may be required to pay for continued health insurance via COBRA?
An HRA plan type that is not subject to COBRA, as they are not considered group health plans
What are "QSEHRA plans (Qualified Small Employer HRAs)"?
State-level laws that allow employees, typically at small companies with fewer than 20 employees, to continue their group health insurance for a limited time after losing their job or experiencing a qualifying event.
What is State Continuation of Coverage (or Mini-COBRA)?
This is what the acronym COBRA stands for.
What is The Consolidated Omnibus Budget Reconciliation Act?
If you are choosing not to elect COBRA coverage, you get ______ to join a plan through the Health Insurance Marketplace.
What is a "60-day special enrollment period"?
Within 14 days of a qualifying event
What is the timeframe to provide the "Election Notice"?
Voluntary or involuntary termination of employment (other than gross misconduct), Reduction in hours resulting in loss of coverage, Retirement, Divorce/Legal separation, or Loss of Dependent Child Status
What are common examples of qualifying life events?
The number of states that currently have some type of mini-COBRA/State continuation
What is 44?
This is another word for a COBRA eligible member.
What is a (qualified) beneficiary?
This is the maximum amount of time a child who ages out of their parent's insurance (turns 26) can be on COBRA.
What is 36 months?
The notice that must be provided to all eligible group health care participants within 90 days of becoming eligible to participate in the group health plan
What is the COBRA general notice (or "initial notice")?
This is an alternative for members if they feel COBRA prices are too high.
What is the Health Insurance Marketplace?
self/level-funded plans, federal government plans, or church plans
What are the plans that are not typically subject to Mini-COBRA?
This company specializes in employee benefits, particularly the benefit and claims processing aspect of employee benefits. This includes COBRA services.
What is a Third Party Administrator?
This is the usual amount of time a member has to make their elections for COBRA coverage
What is 60 days?
$110/per day - per beneficiary
What are the DOL fines for failing to provide COBRA notices?
Being terminated due to gross misconduct, dropping current insurance due to cost, and failing to pay COBRA premiums, thus allowing your policy to lapse.
What are examples of non-Qualifying Life Events?
The reason self-funded and level-funded plans are generally not subject to state mini-COBRA laws is because they are regulated by this
What is "Federal ERISA law"?
This is what provides each qualified beneficiary (employee, spouse, dependent child) the right to make their own, separate election.
What are Independent Election Rights?
This is the usual amount of time a member has to make their first payment after electing COBRA coverage
What is 45 days?
General Notice (within 90 days of enrollment), Election Notice (within 14 days of a qualifying event), Notice of Unavailability (if ineligible), Notice of Early Termination
What are the required COBRA notices?
A separate event, such as death of the covered employee, divorce, or a child losing dependent status, that occurs during an initial 18-month COBRA coverage period
What is a "Second Qualifying Event"?
One state that generally provides longer maximum-continuation coverage periods after qualifying events for which federal COBRA requires less (e.g., termination of employment or reduction of hours)
What are New York / California/ Connecticut / Texas?
(NY & CA = 36 mos, CT = 30 mos, TX = 24 mos)