Employees many leave a company at any time. Employee benefit consultants can offer insight into Consolidated Omnibus Budget Reconciliation Act (COBRA) administration if a worker elects to continue to receive medical benefits after giving his two weeks notice.
COBRA provides workers and their families the opportunity to continue to receive group health benefits provided by their health plan for set amounts of time. Former employees can receive COBRA benefits due to circumstances including voluntary or involuntary job loss, divorce and transition between jobs. Qualified individuals may be required to pay the entire coverage premium up to 102 percent of the cost of their prior plan.
Not all companies offering medical benefits to employees can take advantage. COBRA only requires that group health plans sponsored by employers with 20 or more employees in the previous year have the chance for temporary extensions of their health coverage.
Employers face the challenge of administering COBRA benefits, but consultants can provide assistance with employee benefit plan administration. Benefit services can educate supervisors on COBRA eligibility requirements and how to administer the benefits correctly.
