The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice.
For your use, you will find below PDFs of COBRA documents from the Department of Labor that will be of value to you and your employees.
An Employees Guide to Health Benefits under COBRA
An Employees Guide to Health Benefits under COBRA – Spanish
***************
An Employers Guide to Group Health Continuation Coverage under COBRA
An Employers Guide to Group Health Continuation Coverage under COBRA – Spanish
English