What is COBRA Insurance?
Hmm… I just fired my first employee. Do I keep on the Group Health Insurance Plan?
I’m not paying for their health insurance when they’re gone… How do I handle this?
Ahh… COBRA. We’ve been getting this question a lot recently with our clients. What do you do when an employee voluntarily quits, or you terminate an employee?
You don’t offer them the coverage anymore, but at the same time, you don’t want to leave them on the streets without health insurance.
Well good news, this is when COBRA gets involved. There is a lot of information involved that Employers and Employee should know when it comes to COBRA and how it works.
When it comes to COBRA, if an employee voluntarily quits or gets terminated COBRA is there to help extend their coverage generally for 18 months. If your business has under 19 employees you are under what’s called CAL-COBRA.
CAL-COBRA is when you terminate an employee, or they voluntarily quit, you contact the Health Insurance Company directly, so they can properly submit, send out and handle all the COBRA paperwork to that employee for you. You don’t have to do much as the employer when it comes to CAL-COBRA.
Now… if you are over 19 employees in your business now you are in just plain COBRA. How this works is usually you have a third party admin service that handles all the COBRA paperwork for you. There are tons of ways you can get into trouble legally handling your own COBRA paperwork, and we don’t recommend most businesses doing it this way. If you have your group benefits plan with us here at J&J we offer a free third-party administrative service to handle all your COBRA paperwork.
When it comes to COBRA the employee must receive their COBRA paperwork within 60 days, so you have to make sure you jump on it, as soon as they quit or are terminated. The Employees are also responsible for 100% plus admin fees in order to obtain the COBRA Coverage.
If you’d like more information on COBRA or have questions on any other insurance related topic. Please contact us, we’d love to help!
Contact us today!
Taylor J. Garcia