COBRA Policy

JF12 · June 2006

I currently give all new employees a New Hire COBRA notice. Do I need to also put something in the handbook? If so, does anyone have a policy that I could take a look at?

Thanks

Leo · June 2006

I don't know if you HAVE to, but we have this little blurb in our Handbook:

The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under [company's name] health plan when a qualifying event would normally result in the loss of eligibility.

Under COBRA, the employee or beneficiary pays the full cost of coverage at [company's name] group rates plus an administration fee. Each eligible employee will be provided written notice describing rights granted under COBRA when the employee becomes eligible for coverage under [company's name] health insurance plan. The notice contains important information about the employee’s rights and obligations.

njjel · June 2006

Also, when a new hire becomes eligible for health insurance you are required to give them the COBRA Initital Notification Notice.

E Wart · July 2006

I think you are talking about the initial notice letter. Our broker and insurance company recommended that we "mail these" to the employees for proof of delivery. They should be addressed to "employee name and family". I do a 2 sided copy, one side just showing the first page of the notice which has the employees name on it and date and other side has a copy of the "stamped" envelop with the date posted on it. Keep these in a file in case you have to ever prove that employee was made aware of this. I also mail a copy of this letter (about 16 pages) to our insurance company, COBRA Coordinator. They administer COBRA for us, with the exception of the initial letter.
Also, you should have something about COBRA in your group insurance SPD which you give to all employees. I am sure your insurance company/broker has reviewed this and it would be up to date.
E Wart

COBRA Policy

Comments