COBRA Benefits Administration
Simplify COBRA Administration and Avoid the Risk of Penalties
isolved helps you navigate the complexities of COBRA with confidence and expert guidance.
Expert Guidance for Seamless Compliance
COBRA has been a vital part of employee benefits since 1986—the year it was signed into law and the same year isolved began supporting employers with COBRA administration. With nearly four decades of experience, isolved understands the complexities of COBRA and provides clear, concise guidance to make sure you meet your obligations and safeguard your business from potential risk.
Save Time and Reduce Risk
No more time-consuming tasks and complex issues of COBRA administration.
Maintain Compliance
Avoid noncompliance penalties and protect your business from potential litigation.
Automate Processes
Ensure timely delivery of COBRA notices and accurate tracking of COBRA participants.
Expert Support
Navigate smooth COBRA transitions with qualifying events and comprehensive support.
Understand Continuation Coverage and Qualifying Events
Knowing the qualifying events that trigger COBRA is essential for providing accurate information to your employees.
Our team of experts will guide you through the details of continuation coverage, so you understand the duration of COBRA continuation coverage and the specific requirements for different qualifying events including:
- Termination of employment
- Reduction of hours worked (moving from full-time to part-time)
- Death of an employee
- Failure to return to work after FMLA
- And more
Simplify COBRA administration and gain confidence, ensuring seamless transitions for your employees during critical life events.
Stay Informed and Compliant with Changing Regulations
Navigating COBRA regulations and staying up to date with changes from the Department of Labor (DOL) can be challenging.
We provide you with the resources you need to stay compliant. As a customer, you will have access to:
- COBRA Administration FAQs
- Compliance checklists
- ACA updates
- Details about the latest COBRA laws
- Obligations under ERISA and HIPAA in relation to COBRA
- And more
Understand how state continuation laws may affect your business.
Empower Your Business and Employees with Flexible, Affordable Alternatives to COBRA
isolved Portable Alternative Coverage provides an innovative way to expand affordable and cost-saving options that go beyond the conventional COBRA confines. This alternative coverage streamlines post-employment benefits by eliminating COBRA enrollment hassles, optimizing plan offerings, and providing personalized health insurance alternatives, reducing administrative burdens and ensuring seamless, stress-free transitions for exiting employees.
This proactive approach alleviates confusion for exiting employees and optimizes group plan management. Bolstered by an innovative artificial intelligence (AI)-driven marketplace, participants are provided with an expanded list of ACA and private medical options not available through COBRA.
Hear from Our People Heroes
See how isolved has helped our customers set up and administer COBRA benefits.
Gaining HR Insight from Administrative Automation
See how a medical clinic automates administrative tasks to maintain COBRA regulations and mitigate the risk of errors and fines.
Read Case Study
Driving Financial Expertise with Scalable HR Solutions
Benefits broker offers clients enhanced benefit packages at lower costs while improving processes for faster and more efficient service.
Read Case Study
Improving HR Precision for Radiology Professionals
Healthcare company turns to their broker for help finding a solution to manage their COBRA administration, finds isolved as their answer.
Read Case StudyCOBRA Benefits Administration FAQs
What is COBRA?
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, a federal law that allows qualified beneficiaries to continue group health coverage after specific life events. These events include job loss (except for gross misconduct), reduction in hours of employment, legal separation, divorce, death of the covered employee or a dependent child aging out of a parent’s plan. COBRA applies to employers with 20 or more employees offering group health insurance.
Under COBRA, former employees, retirees, spouses and dependents may elect COBRA and maintain their previous health plan coverage for a limited time, typically 18 to 36 months, depending on the qualifying event. COBRA coverage is not free; qualified beneficiaries must pay the full monthly premium plus a 2% administrative fee. State laws may offer additional options through mini-COBRA programs for smaller employers.
What is COBRA administration?
COBRA administration refers to the process of managing COBRA compliance for group health plans as required by the federal government. This includes tracking COBRA eligibility, sending required notices to qualified beneficiaries, managing enrollment and coverage options, and collecting COBRA premiums. COBRA administration ensures that former employees and eligible family members can access continuation health coverage after qualifying events.
Employers or third-party administrators handle tasks like monitoring due dates, calculating insurance premiums, and providing information on COBRA rights and benefit plans. The plan administrator must meet federal COBRA requirements, including accurate communication and documentation related to health insurance coverage, open enrollment and plan changes.
Which employers must comply with COBRA and who is eligible?
COBRA applies to private-sector employers with 20 or more employees that offer a group health plan. This also includes state and local governments but not plans sponsored by the federal government or certain church-related organizations. These employers must offer COBRA insurance to qualified beneficiaries after specific life events that would otherwise cause a loss of health benefits.
Eligible individuals include former employees, spouses and dependent children who were covered under the group health plan. Qualifying events include voluntary or involuntary job loss (not due to gross misconduct), reduction in work hours, divorce, legal separation, death of the covered employee or a dependent child aging out of eligibility. COBRA does not apply to life insurance or other non-health benefits. People who become eligible for Medicare or Medicaid after losing coverage may have different continuation of coverage options.
