What If My Employer Doesn’t Know How To Administer COBRA?
What if my employer does not know how COBRA works?
You can direct your boss or HR department to the Employer’s Guide to COBRA to learn their responsibilities. Companies with 20 or more employees are required to offer former workers and their families access to the same health plan they had when the policy was in full force. The COBRA act compels employers to notify qualified beneficiaries of their rights and ensure enrollment.
Third-Party COBRA Administration Services
Many employers use a Third Party Administrator to manage COBRA the enrollment and billing process. By law, these companies are allowed to charge up to 2% of the health insurance premium for administration fees. This fee is paid for by a former employee or family member that uses the continuation of the medical plan.
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