The Consolidated Omnibus Budget Reconciliation Act (COBRA) was passed by congress in 1986. The provision allows certain individuals and their family members to continue receiving health benefits at group rates, for a set amount of time, after the individual has left his job.

The rules surrounding COBRA health plans are complex and change often, making it imperative that all members of your HR and benefits departments have access to the latest training. As you seek out the best COBRA education and training resources for you and your team, keep the following in mind:

1. Specific training and certification is required to become a Certified COBRA Administrator.

2. Many companies offer on-site and off-site COBRA insurance seminars and training workshops.

3. You can save money and time by getting your COBRA insurance information through online webinars.

Action Steps
The best contacts and resources to help you get it done

Get your COBRA health insurance certification through COBRA training courses

COBRA health plans are complicated and governed by many rules. Failing to fully understand and comply with these rules can be costly for your company. Through certification, you can ensure that you and the members of your team know how to keep your company compliant with all of COBRA's complex regulations.

I recommend: HRCertification.com offers a complete COBRA training and certification program with discounts for multiple users. It also offers a "Certified TPA" seal program. Or, sign up for the COBRA certification program at North Carolina State University.

Look to COBRA health coverage training workshops and seminars to get your staff up to speed

Keep your staff in the know with COBRA health plan changes through professional workshops and seminar attendance. Such events will not only equip your staff with the information about COBRA insurance that they need, but will also build a sense of camaraderie and teamwork.

I recommend: At COBRA Resources you can sign up for on-site training or off-site seminars to learn the latest rules of COBRA compliance. Employee Benefits Institute of America will keep you on top of the latest COBRA law changes through its series of informative seminars.

Stay abreast of the latest COBRA rules and regulations with convenient webinars

A great way to supply your team with comprehensive COBRA training is through webinars. Webinars are cost effective and won't interfere with your company or department's daily operations. Additionally, webinars allow you the flexibility of picking and choosing only the programs that meet your company's specific training needs.

I recommend: Sign up for the COBRA Advanced webinar at Infinisource. The company also offers traditional and in-house seminars as well as training credits. Register for the Recognizing and Addressing COBRA on-demand webinar from Lorman Education Services. You can also order books or sign up for the company's newsletter.

The Consolidated Omnibus Reconciliation Act of 1985 (COBRA) requires that companies continue to provide health benefits to former employees for up to 18 months. COBRA is a federal law that applies to companies with more than 20 employees and some states also have "mini COBRA' laws that apply to smaller companies.

COBRA covers employees regardless of whether they quit or are terminated (except in cases of gross misconduct), and also covers spouses and children under certain circumstances. Although COBRA paperwork can be a headache, employers can charge recipients 102 percent of the cost, with the extra 2 percent for administration costs.

Understanding and effectively managing COBRA benefits will:

1. Ensure laid-off employees and their families have coverage
2. Help your company avoid heavy fines, as the IRS has stepped up COBRA compliance efforts
3. Prevent you from having to pay medical claims from employees who should have been notified of their coverage, but weren't. In those cases, your insurance company doesn't have your back, making you responsible for paying the former employee's medical bills. COBRA notification is the employer's responsibility, not the insurance company's.

Action Steps
The best contacts and resources to help you get it done

Know the law

Familiarizing yourself with COBRA regulations and definitions is the first step you need to take.

I recommend: The Department of Labor provides an overview of the federal law as well as FAQs and information on compliance assistance. You also need to check with your state's labor department. Cobrahealth.com provides resources on states' “mini COBRA” laws.

Call in the experts

Instead of handling compliance and administration yourself, outsource COBRA services.

I recommend: HR outsourcing firms like Ceridian handle millions of COBRA claims, potentially saving you time, resources and worry.

Get off on the right foot

By law all new employees need to receive letter informing them of their COBRA rights when they are hired.

I recommend: Use this sample notification letter from CCH.

Offer a lower-cost alternative

Companies must offer COBRA coverage if they meet federal and state criteria, but coverage is expensive and you can offer your employees a cheaper option.

I recommend: Extend Benefits offers the Extend COBRA Alternative Program (CAP) to small businesses as a cheaper option than COBRA.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Coverage usually ends when coverage under another health plan begins.
• •  Under the law, children who are born, adopted or placed for adoption with the former employee during the continuous coverage period are now beneficiaries.
• •  Former employees are not entitled to group term-life insurance under COBRA.

Congress designed and implemented COBRA for the benefit of workers who lose a job and the health insurance benefits tied to that job. The plan provides for the temporary continuation of health insurance for employees, their spouses and children. COBRA expenses to a terminated employee are usually more expensive than their previous payments, but less expensive than other available insurance plans. Employees will find that COBRA provides them with lower premiums, but there are also other important benefits that come with COBRA. Most people will benefit greatly with COBRA coverage because this plan ensures that when applying for benefits at their next job, they will find coverage for pre-existing conditions. COBRA coverage includes expenses for physicians, inpatient and outpatient hospital stays, surgery and prescription drugs.

Action Steps
The best contacts and resources to help you get it done

Safe harbor

COBRA insurance is not a long-term plan, but it is a safe harbor of health care coverage for employees between jobs. COBRA supplies continued health care coverage that usually comes in connection to a job. COBRA also extends the benefits of a safe harbor to spouses and dependents with a health factor or pre-existing condition that insurance companies will not cover if the employee does not have COBRA coverage during unemployment.

I recommend: The Internal Revenue Service is a source of information on many government programs, including COBRA and the safe harbor benefits.

Partial premium payments

Employers collecting premium payments for affected employees, their spouses and dependent children do not need to inform employees if they do not pay premiums or will lose their coverage. However, these same employers must inform affected individuals if they send partial premium payments. If employers receive a partial premium payment that includes a significant amount of the required payment, the employer must accept this as a payment in full or notify the individual of the deficit and allow enough time to send the required payment.

I recommend: Cobra Tips website is an excellent source of information where those interested in the benefits of COBRA will find answers to their questions.

Qualifying events

COBRA coverage is a great benefit for people, but there are qualifying events that provide eligibility for employees, their spouses and their dependents. Qualifying events include voluntary or involuntary termination of employments or a reduction in the hours of employment and the health care benefits connected to that job. Qualifying events for spouses and dependent children include divorce, separation or the death of the sponsor.

I recommend: The official website of the US Department of Labor is a good source for individuals seeking information on COBRA benefits.

Election period

Knowing the rules and regulations regarding COBRA can make a significant difference in costs and benefits for individuals. Eligible people should pay careful attention to the election period provisions or they will lose their rights for continued coverage of health insurance under COBRA. In order to enroll in COBRA, the affected employee, spouse and eligible children must sign up during the election period, which is 60 days after receipt of the notice from the employer confirming eligibility.

I recommend: Insure.com has comprehensive information on insurance and COBRA in particular.

Triggering event

Employers must offer COBRA insurance coverage to terminated employees in the event of six different triggering events. These events include the death or retirement of the covered employee or sponsor. Other triggering events include the bankruptcy of the company or reduction in the hours worked by the employee. Dependent children qualify for COBRA coverage when they lose their dependent status and the benefits of health insurance coverage based on the employment of one of their parents.

I recommend: Employee Benefits Institute of America covers the important benefits of COBRA on its website, EBIA .

Initial notice

Employers have certain obligations to their employees when they are hired and when they become eligible for COBRA benefits due to qualifying events. Each employer is obligated to provide an initial notice of eligibility for COBRA coverage to employees when they are hired. This initial notice of eligibility of COBRA coverage should include a summary of the plan benefits to new employees and their spouses.

I recommend: Cobra Health is an excellent source of information on the benefits and procedures for COBRA coverage.