COBRA: More than a right, it’s a requirement

January 10, 2024
cobra on a clipboard with red glasses

We realize most employers don’t enjoy discussing the details of COBRA. Once words like “regulatory,” “compliance,” and “federal law” come into play, employers can feel overwhelmed, confused, and concerned about the expense.

Fear not — that's where Omnify comes in. Our team includes people who are solely dedicated to demystifying COBRA and taking care of all the compliance rules for you. Our cloud-based platform streamlines the process with efficiency while providing peace of mind and confidence. We handle the administrative burden, send the required COBRA notices, manage payments, and keep you in compliance with the regulated participant timelines.

Why COBRA matters

It’s necessary for employers to understand that COBRA is more than a right, it’s a requirement put in place by the federal government. The Consolidated Omnibus Budget Reconciliation Act became a federal law in 1985. The law states that employers with 20 or more employees who offer healthcare benefits must offer the option of continuing this coverage to individuals who would otherwise lose their benefits due to termination of employment, reduction in hours, or certain other events.

Omnify works closely with an employer’s human resources team to make sure they are educated on all the benefits that are covered under the COBRA law. When COBRA is triggered, the following plan types are covered:

  • Healthcare plans (HMOs, PPOs, HDHPs, self-insured plans, etc.)
  • Flexible spending accounts (FSAs)
  • Dental plans
  • Vision plans
  • Hearing plans
  • Prescription drug plans
  • Alcohol and substance abuse plans
  • Employee Assistance Programs (EAPs) offering mental healthcare
  • Health reimbursement arrangements (HRAs)

The U.S. Department of Labor explains that COBRA health coverage offers numerous benefits including continuity of coverage, coverage of dependents, avoiding a lapse in coverage, generous time to enroll, and long-term coverage. 

You’re not alone

There are so many nuances to COBRA administration that apply to coverage that even employers who believe they are compliant may be penalized during routine audits. COBRA needs to be administered correctly from the employment onset all the way through triggering events. It’s a huge responsibility to self-administer COBRA, because in addition to being one of the federal government’s most complex laws, COBRA regulations are also among the most rigid.

COBRA doesn’t have to be stressful, however. At Omnify, we’re passionate about administering a complete employment benefits package with white-glove customer care. We always have real people, with real answers, in real time. Let us oversee your COBRA plan and ensure you’re both compliant and offering the best possible care for employees — which will, in turn, help you attract and retain high-quality talent. We're here to make your life easier!

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