COBRA
What is COBRA?
It is the continuation of Group Health Benefits & Dental for a set period of time depending on the life event that triggers termination of coverage paid for by the former participant. Included in the Group Health is Flexible Spending Accounts.
Who Must Comply?
Employers who maintain group health insurance plan(s) for their employees are subject to comply with the provisions of the law. Exempt are employers who employed less than 20 full or part time employees in 50% of the previous calendar year.
What are the Penalties for non-compliance?
- Penalties for non-compliance with COBRA can result in:
- IRS excise tax penalty of $100 per day for each violation. This fine can be increased to $200 for each day in which there was more than one Qualified Beneficiary per family.
- An ERISA penalty of $110 per day payable to each Qualified Beneficiary for each day the employer was not in compliance.
- The employer can be held liable for payment of legal fees, court costs and even for medical claims incurred by a Qualified Beneficiary.
Please contact us for full details on Cobra
or goto the Depatrment of Labor for Guidedance.
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1560 Old York Road
Abington, PA 19001
Phone:215-657-7400
Fax: 866-386-1595
O'Neill Consulting Corporation
Website: www.oneillcc.com
Provides answers to commonly asked questions about COBRA.
Provides a detailed overview of the major provisions of COBRA.
Provides publications and other materials to assist employers and employee benefit plan practitioners in understanding and complying with the requirements of ERISA as it applies to the administration of employee pension and welfare benefit plans.
Provides guidance on making health benefit decisions following key life events such as marriage or the birth or adoption of a child.
