COBRA: What You Need to Know

What is COBRA Health Insurance?What is COBRA?

COBRA is a federal law that allows certain employees, spouses and dependents to temporarily continue their health coverage at group rates. This summary includes an overview of COBRA’s rules for employer-sponsored group health plans.

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. This chart provides an overview of key aspects of COBRA.

Who is Responsible for Premiums?

Group health plans can require qualified beneficiaries to pay for COBRA continuation coverage. In general, the maximum amount charged to qualified beneficiaries cannot exceed 102 percent of the plan’s total cost of coverage. This overview summarizes the rules for COBRA premiums, including how to determine the premium amount and payment deadlines.

COBRA Liability in Business Reorganization

Business reorganizations, such as mergers and acquisitions, often raise liability issues regarding COBRA continuation coverage. Internal Revenue Service (IRS) regulations provide detailed rules regarding the COBRA consequences of business reorganizations. This report on continuation coverage requirements provides a summary of the IRS’ rules for COBRA liability in business reorganizations.

Need to know more?

For more information about implementing an effective employee benefits program and ensuring ACA, IRS, and USDOL compliance, talk to your Taylor Insurance Services expert today. Don’t have a Taylor Agent? We’d love to get you connected to the Power of T. Call us today at (229) 247-6411 or email us at Our knowledgeable experts are ready to help you get the most out of your employee benefits program and develop strategies that both recruit and retain top-notch talent.

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