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COBRA

If you employed 20 or more full-time employees in the preceding calendar year and offer a group benefit plan, you are required to adhere to the regulations created by the Consolidated Omnibus Budget Reconciliation Act (COBRA) as well as ERISA.

Instituted in 1985, COBRA was developed to protect individuals from a loss of coverage due to termination, retirement, divorce, reduced hours, or another qualifying event. When an individual loses coverage, COBRA offers the opportunity to continue receiving benefits. If the person chooses to elect COBRA, it is their responsibility to pay the full monthly premium. As the employer, it is your responsibility to ensure your company remains within compliance. Falling outside of compliance can be a costly mistake.

Many employers today simply do not have the time or resources to stay abreast of the ever-changing complex laws surrounding COBRA administration. Outsourcing COBRA to FBA not only lowers risk of falling outside of compliance, but it also allows you to redirect your focus back to the success of your business.