Consolidated Omnibus Budget Reconciliation Act
There are various notifications that are required in order for your company's HEALTH PLAN to be in compliance with the requirements of COBRA and NYS Continuation.
There are THREE notices that must be sent to current/former employees:
After a timely notification has been made the employees and their dependents have 60 days from the later of the "qualifying event" or the date of their notification of their rights, to decide/elect COBRA coverage. If elected, coverage is retroactive to the date coverage would have been lost.
The former employee or their eligible dependent must then pay the full premium (102% is permitted) to the employer within 45days. While for larger groups the insurer may collect the premium on the employer's behalf, for small companies this may not be available. Therefore the employer should inform the COBRA beneficiary that checks are to be made payable to the employer, since the COBRA beneficiary will remain on the group's bill.
Please email us the problem/question: