“COBRA” stands for Consolidated Omnibus Budget Reconciliation Act of 1985.
COBRA is the federal health care continuation law.
COBRA requires that if an employee or other “qualified beneficiary” loses
employer-provided health coverage due to termination of employment or another
specified “triggering event,” the group health plan must offer continued health
care coverage to the qualified beneficiary. The qualified beneficiary may be
(and typically is) required to pay the full cost for the coverage.
COBRA coverage has limited duration.
In most cases, the maximum COBRA period is 18 or 36 months from
the date of the qualifying event.
COBRA effects groups of 20 OR MORE
Employee count includes all full and parttime employees on the payroll.
Some owners that have interest in 2 or more companies may need to comply even if
neither one has 20 employees.
With that said there are other variables, so always seek legal counsel first, to
find out if and how you need to comply.
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