Regulatory compliance is complex. With legislation changing rapidly, it can be challenging to stay current on the latest compliance issues.
However, you don’t have to tackle those issues on your own. When you partner with industry experts and vendors, some of that pressure can be relieved.
Educating yourself on compliance topics relevant to you can help get you one step closer to achieving compliance.
For U.S. employers with 20+ employees – learn what COBRA requires, what notices you must send, and how to avoid penalties.
Need help? PrimePay automates COBRA administration so you stay compliant without manual work. Talk to a COBRA Compliance Specialist Today
What is COBRA?
As explained by the U.S. Department of Labor (DOL), the Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that “gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.” Under COBRA, employers with 20 or more employees in the previous calendar year who sponsor group health plans must offer the option of continuing this coverage to individuals who would otherwise lose their benefits due to the reasons outlined above.
Note: Individual states may also have specific state continuation requirements.
Who Must Offer COBRA?
Any employer with 20 or more employees in the previous calendar year who sponsors a group health plan. Some states have “mini-COBRA” continuation requirements for smaller employers.
Get a COBRA compliance check today
Employer COBRA Notice Requirement
1. COBRA Initial Notice
Deadline: Within 90 days of coverage start date.
Informs employees/dependents of rights to continuation coverage, notification requirements, and election rules.
Avoid notice mistakes with PrimePay
2. Qualifying Event Notice
Triggers: Death, termination, reduced hours, Medicare entitlement, etc.
Employer must notify the plan administrator within 30 days.
3. COBRA Election Notice
Deadline:
– 14 days from administrator being notified
– OR 44 days after the qualifying event if employer = administrator
Includes coverage details, eligibility, cost, deadlines, and consequences.
Non-Compliance Penalty: $100+ per day per person.
Stop worrying about deadlines — PrimePay automates it for you.
ARPA COBRA Premium Assistance — What Employers Need to Know
American Rescue Plan Act (ARPA) created a temporary subsidy for COBRA coverage: premiums were 100% covered for eligible individuals from April 1 – September 30, 2021.
Even though ARPA has ended, employers may still face retroactive questions and audit exposure.
COBRA Compliance Isn’t Optional — But It Can Be Easier
PrimePay handles all COBRA administration so you can focus on your business, not federal regulations.
PrimePay COBRA Administration Includes:
✔ Automated COBRA timelines & notifications
✔ All notices delivered on time
✔ Eligibility tracking & documentation
✔ Participant billing & payment management
✔ Reporting for audits and IRS compliance
Avoid penalties & excise taxes: $100+ per day per violation
Additional resources for employers.
The DOL put together an informational guide titled “An Employer’s Guide to Group Health Continuation” which includes information on COBRA notices and election procedures. Click the below link to view this resource for additional information on what is outlined above:
Another great resource can be found on the DOL’s website at the following link:
How the American Rescue Plan Act of 2021 (ARPA) affects COBRA.
The American Rescue Plan Act of 2021 (ARPA) COBRA premium assistance provisions took effect on April 1, 2021. Even small employers who are exempt from federal COBRA regulations may have to comply with the ARPA COBRA premium assistance as State continuation coverage that is comparable to Federal COBRA is included.
An “Assistance Eligible Individual” does not owe any part of the COBRA premium for the period of coverage starting April 1, 2021, and ending September 30, 2021.
PrimePay’s COBRA solution
Schedule a free consultation — no hard pitch. Just answers, clarity, and options for your business.
Request a COBRA Administration Quote Today
Please read our disclaimer here.
