COBRA
01.Core Concepts
COBRA: Consolidated Omnibus Budget Reconciliation Act of 1985 • Requires an employer that maintains a group health plan and employs 20 or more people to continue to provide coverage under the plan to covered employees and qualified beneficiaries. • 60-day election period • The employer can pay the premiums or require the employee to pay the premiums. • Employer can charge an administrative fee up to 2%. • The maximum coverage period for retirement is 18 months. • After18 months, the retired employee: • Can exercise the conversion rights that are otherwise available under the plan, or • Will be eligible for a 60-day special enrollment period in the health insurance marketplace