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.