COBRA

The Consolidated Omnibus Reconciliation Act of 1984 (COBRA) established a mechanism for continuation of group health coverage (and some ancillary coverages) for participants experiencing a COBRA-qualifying event such as termination, reduction-in-hours, or a life event such as a divorce, death, or a dependent losing dependency status (for example, reaching his or her 26th birthday). While the Qualified Beneficiary pays the premium cost of that coverage that otherwise would have been lost, COBRA administration is fraught with complexity and significant potential penalties for non-compliance. For example, failure to provide an initial COBRA notice to a new spouse of an employee can result in the employer, not the insurer, paying six or seven figure eligible health claims after a COBRA-qualifying event occurs. Working hand-in-hand with  our clients, Kushner & Company ensures that your COBRA events (both initial and qualifying), as well as payment and COBRA termination are handled in compliance with the provisions set forth by the IRS and the Department of Labor and in a timely manner as mandated by law. For states with mini-COBRA laws, Kushner & Company makes sure you are in compliance with these as well.