COBRA and state continuation

Summary

1

Employers with group health plans subject to federal COBRA are required to offer continuation coverage to enrolled employees, spouses and dependents when there is a loss of coverage triggered by a qualifying event. 

2

Employers are required to comply with specific notice, election and payment collection procedures for plan participants who are offered continuation coverage following a qualifying event.  

3

An employer who uses a COBRA administrator must ensure the COBRA administrator complies with notice, election and payment requirements. The employer remains responsible for providing any notice not provided by the administrator (e.g. the COBRA Initial Notice), and must notify the COBRA administrator within 30 days of a participant’s termination of employment, reduction in hours, death, or Medicare entitlement.  

4

Employers offering fully-insured group health plans may need to comply with state continuation requirements in the state in which the plan is issued.