COBRA Administration

Congress passed the Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions in 1985. The law amends the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code and the Public Health Service Act to provide continuation of group health coverage that otherwise would be terminated. COBRA contains provisions giving certain former employees, retirees, spouses and dependent children the right to temporary continuation of medical, dental, and vision coverage at group rates under certain provisions.

Generally, a business is subject to the health plan continuation rules of COBRA if it had 20 or more employees on 50% or more of its working days in the prior calendar year. It applies to plans in the private sector and those sponsored by state and local governments. The law does not, however, apply to plans sponsored by the Federal government and certain church- related organizations.

Early in 2009, COBRA was modified to include a premium subsidy program for those employees who are involuntarily terminated between October 31, 2008 and December 31, 2009. There are many regulations surrounding this premium subsidy, as well as COBRA in general. Northrim Benefits Group not only provides its clients guidance on the confusing world of COBRA, but can also arrange for a third party to administer COBRA to ensure compliance with the regulations. Our partner administrators can relieve the burden of COBRA compliance and administration to allow you to focus on running your business.

Contact us today to see how we can assist your business with COBRA compliance and administration.