What is Cobra?

COBRA is a federal law that mandates employers with at least 20 employees to offer continued healthcare coverage to eligible individuals who lose their health benefits due to specific events.

Eligible individuals must be notified and given the option to continue their coverage for a limited time. Employers must comply with COBRA regulations to avoid penalties and legal repercussions.

Eligible individuals who elect to continue their healthcare coverage through COBRA are responsible for paying the full cost of the premium, plus a 2% administrative fee.

However, in certain situations, such as when an employer terminates a group health plan, the employer may be required to pay a portion of the premium for a limited time.


Benefits for Employers


We recognize choice is one the most powerful tools in the box. Employers can choose whether to administer COBRA themselves via our system or allow us to administer COBRA on their behalf.

Excellent Customer Support

With Driven Benefit Administrators, you will never be alone with your enrollments. Not only will you have a dedicated account representative who will be fully trained on your case, but your employees will have access to our benefits call center for any help they may need as well. We'll provide you with customizable resources to share with your employees to help educate them on their options, saving you even more time.

Hands-free Carrier Notifications

Advising carriers of continuation of coverage can be quite a task. Our COBRA system automatically sends an electronic communication to the carrier, with all relevant information, within 24 hours of initial payment, address change or lapse of premium to update coverage accordingly.

Reduced Liability

Utilizing our COBRA system will help you reduce your liabilities, provided qualifying events are reported timely. Within 48 hours of entering a qualified beneficiary (via EDI file or manually) , General or Specific Rights are automatically mailed without any further interaction from you.

Federal COBRA Compliance

Avoiding penalties as outline in the Consolidated Omnibus Budget Reconciliation Act of 1985 is obtainable utilizing our system. The architects of the software maintain current working knowledge of any change to the law and update the system accordingly. You can rest assured timely reporting of qualified beneficiaries will avoid any potential penalties.

Employer FAQ

Qualifying events that trigger COBRA coverage include termination of employment (other than gross misconduct), reduction of work hours, divorce or legal separation, death of the covered employee, and loss of dependent child status.

Employers are responsible for notifying eligible individuals of their COBRA rights, offering continuation coverage, and collecting premiums. Employers must also comply with specific notice and disclosure requirements, such as the distribution of a Summary Plan Description (SPD).

Employers can charge eligible individuals up to 102 percent of the applicable premium for the plan. This includes the cost of coverage and an additional 2 percent for administrative expenses.

Employers can terminate COBRA coverage early if the eligible individual fails to pay premiums, becomes covered under another group health plan or Medicare, or if the employer terminates the group health plan altogether.

Ready to automate your COBRA process?