Prior to passage of the landmark Consolidated Omnibus Budget Reconciliation Act of 1986, usually referred to as COBRA, only active full-time employees and their qualified dependents were eligible to participate in employer-sponsored group health insurance plans. If an employee left covered employment, group health insurance was lost. In passing COBRA, Congress required employers to offer continued coverage on a self-pay basis for a set period of time when a qualifying event—termination of employment, death, divorce, etc.—would otherwise end eligibility for insurance.

In addition to regular group health plans, COBRA may also apply to flexible spending accounts, Health Reimbursement Arrangements, and Medical Reimbursement Plans.

Employee Benefit Resources, LLP has the experience and technical skills to help your organization comply with this important and often challenging law. Let us put our expertise to work for you.