General Information
The COBRA law was passed in order to provide employees, their spouses and dependents with a temporary extension of group health insurance when coverage is lost due to certain events. These events are called “Qualifying Events”.
The COBRA coverage must be identical to the coverage provided to similarly situated active employees. The employer may charge up to 102% of the premium for COBRA continuation coverage.
All employers who had 20 or more employees, “on a typical business day,” (on 50% or more of the business days) during the preceding calendar year must comply with COBRA. This includes all full-time, part-time, owner & officers regardless of their eligibility or participation on the group health plan.
The IRS has responsibility for auditing employer and applying penalties if an employer does not comply with COBRA”S requirements. The penalty is $100 per day, per violation for non-compliance and $200 per day if more than one beneficiary in a family back to January, 1989!
Flex Administrators, Inc. offers COBRA administration for companies both large and small. Our administrators have undergone extensive training and are available to assist you with all of your COBRA needs. We also have online administration available. If you would like a quote for COBRA administration, or just have some questions, please feel free to contact us at (616) 456-7908 or (800) 968-3539.
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HRA • SECTION 105 Health Reimbursement Arrangements |
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HSA • SECTION 223 Health Savings Accounts |
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SECTION 213 Reimbursable / Unreimbursable Expenses |
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