COBRA Compliance - Frequently Asked Questions
COBRA Compliance - Frequently Asked Questions
What is COBRA?COBRA (the Consolidated Omnibus Budget Reconciliation Act) is a federal law that allows certain employees and their families to temporarily continue employer-sponsored group health insurance after experiencing a qualifying event that would otherwise result in loss of coverage.
Who does COBRA cover?COBRA protects “Qualified Beneficiaries,†which may include: - Employees
- Spouses
- Former spouses
- Dependent children
These individuals may elect continuation coverage after specific qualifying events.
Which employers must comply with COBRA?
COBRA applies to private-sector employers with 20 or more employees on more than 50% of typical business days in the previous calendar year, as well as state and local government plans.
What is a qualifying event under COBRA?Common qualifying events include: - Voluntary or involuntary termination of employment
- Reduction in hours
- Divorce or legal separation
- Dependent child aging out
- Medicare entitlement (in certain cases)
Our training explains each in detail.
How are employees counted for COBRA coverage?
Both full-time and part-time employees are included in the count, with part-time employees calculated as a fraction of a full-time equivalent.
What is included in the COBRA Training & Certification Program?
The program provides step-by-step instruction on: - Employer and plan coverage
- Qualifying event identification
- Notice requirements
- Election procedures
- Premium billing
- Medicare coordination
- Termination rules
- ERISA compliance considerations
What will I gain from completing this course?
You will gain: - Mastery of COBRA regulations
- Confidence in administering continuation coverage
- Reduced compliance risk
- Enhanced professional credibility
- A recognized certification designation
What is the Certified COBRA Administrator designation?
Upon successful completion of the course and examination, participants earn the Certified COBRA Administrator credential, demonstrating regulatory mastery and professional benefits administration expertise.
What training formats are available?
We offer: - Online COBRA Training & Certification Program
- Integrated multi-law programs (FMLA, ADA, COBRA & Workers' Compensation)
Are continuing education credits available?
Yes. This program provides: - 8 hours of HRCI (PHR/SPHR) recertification credits
- 8 SHRM PDC credits
Who should take this course?
This training is ideal for: - HR Managers
- Benefits Administrators
- Payroll Professionals
- Office Managers
- Third-Party Administrators (TPAs)
- Compliance Officers
- Small business owners
?What notice requirements are covered in the course?
The course provides detailed guidance on: - Initial COBRA notices
- Election notices
- Timing requirements
- Required content
- Employer vs. plan administrator responsibilities
Why are COBRA notice timelines critical?
Failure to meet strict notice deadlines can result in penalties, liability for uncovered claims, and ERISA enforcement actions.
What is the COBRA election period?
Qualified Beneficiaries typically have 60 days to elect continuation coverage. The course explains how to calculate this timeline correctly.
an individual decline COBRA and later change their mind?
Yes - within the 60-day election period. The course explains affirmative rejection strategies and administrative best practices.
What happens if an election is made late?
The course explains permissible handling procedures and when coverage may be denied.
How is the COBRA premium calculated?
Generally, employers may charge up to 102% of the total premium (employee + employer share).
What is the 150% premium rule?
In certain disability extension cases, employers may charge up to 150% of the premium. The training explains qualification and timing.
What are the COBRA premium payment deadlines?
Beneficiaries have specific grace periods for initial and ongoing premium payments. Strict compliance is required.
How should employers handle premium shortfalls?
The COBRA Training & Certification Program provides guidance on acceptable shortfall thresholds and notice obligations.
Can COBRA coverage be terminated for non-payment?
Yes, but only after required grace periods and proper documentation.
How long does COBRA coverage last?
Standard continuation coverage typically lasts 18 months, but certain events may extend coverage to 29 or 36 months.
What events can terminate COBRA early?
Coverage may end early if: - Premiums are not paid
- The beneficiary obtains other group coverage
- The beneficiary becomes entitled to Medicare
- The maximum coverage period expires
?Does Medicare affect COBRA eligibility?
Yes. Medicare entitlement before or after a qualifying event affects coverage duration. The course explains complex coordination rules.
What happens if coverage is offered incorrectly?
Improper administration can result in backdated claims liability and regulatory penalties.
Does the training address coverage gaps?
Yes. Participants learn how to prevent coverage interruptions through procedural safeguards.
26. How does COBRA interact with FMLA?
Employees on FMLA may trigger COBRA if they fail to return from leave. Coordination rules are covered in detail.
How does COBRA interact with ADA?
ADA accommodations may impact termination decisions that trigger COBRA rights.
How does COBRA interact with Section 125 Cafeteria Plans?
The course explains continuation rights for health FSA plans and cafeteria plan implications.
COBRA apply to dental and vision plans?
If they are group health plans, yes. The training clarifies covered benefit plans.
COBRA apply to retirement plans?
No. Retirement plans are governed by separate laws.
What penalties can result from COBRA violations?
Violations may result in: - IRS excise taxes (up to $100 per day per beneficiary)
- ERISA statutory penalties
- Department of Labor enforcement
- Civil litigation
What is ERISA's role in COBRA compliance?
COBRA is part of ERISA, meaning plan administrators must meet ERISA disclosure and fiduciary standards.
Can employees sue for COBRA violations?
Yes. Participants may file lawsuits for improper notice or coverage denial.
What documentation is required for compliance?
Proper notice copies, mailing records, election tracking, and premium payment records must be retained.
Does the training help prepare for audits?
Yes. Participants learn documentation workflows that support audit readiness.
What makes this COBRA training different?
The course offers: - Award-winning interactive interface
- Administrative tips
- Real-world examples
- Compliance workflows
- Interactive Q&A
How long do participants have access?
Participants receive one-year access to course materials.
Are legal updates included?
Yes. FREE updates are provided when laws change during the subscription period.
Is there a renewal option?
Yes. Continued access and certification renewal are available for $99 per year.
Can organizations enroll multiple employees?
Yes. Group enrollment strengthens compliance consistency across departments.
What is an affirmative rejection model?
This approach documents when a beneficiary declines COBRA coverage, reducing administrative uncertainty.
Can TPAs benefit from this training?
Yes. Third-Party Administrators managing benefits for multiple clients greatly benefit from certification.
What are common COBRA administration mistakes?
Common errors include: - Late notices
- Incorrect premium calculations
- Improper Medicare coordination
- Poor documentation
Does the course include procedural checklists?
Yes. Participants receive structured compliance workflows.
Is this training suitable for small businesses?
Yes. Even small employers near the 20-employee threshold must understand COBRA triggers.
How do I enroll?
Select the COBRA Training & Certification Program and complete registration online.
Is this course self-paced?
Yes. The online format allows flexible learning.
Can this course strengthen professional credentials?
Yes. The Certified COBRA Administrator designation enhances benefits administration credibility.
Why invest in COBRA certification training?
COBRA compliance errors are costly and highly technical. Structured training significantly reduces exposure.
Best-Selling Training Courses:
Online Training Courses
Find Seminars, Webinars, And Online Training In Your Area
770-410-1219
