COBRA (Consolidated Omnibus Budget Reconciliation Act) became law in 1986. It gives certain former employees the right to keep group health insurance benefits that would otherwise be lost after voluntary or involuntary termination of employment or a reduction in hours.

COBRA also lets family members who were covered by the employee’s group health insurance retain coverage after a qualifying event that would normally cause them to lose the coverage. If coverage ends because employment ends (other than for gross misconduct), or because hours are reduced, the employee and qualified dependents are allowed to keep the employer’s health insurance coverage for up to 18 months.  Longer coverage is permitted in other situations.

Nyhart can help you comply with COBRA, starting with the following evaluation:

• What plans are subject to COBRA
• What triggers the obligation to offer COBRA coverage
• What are the qualifying events for the employee
• What are the qualifying events for the spouse or dependents of the employee, including those that allow the employee’s spouse or children to enroll in COBRA even if the employee does not
• What events are not considered Triggering Events

Nyhart provides the following consulting and administration services for COBRA:

• Create an administration program to fit the client’s specific needs.
• Prepare the COBRA notification letter and mail it via certificate of mailing.
• Upon COBRA election, send a confirmation of the elected benefits and monthly premiums.
• Collect the premiums and send the money to the client.
• Prior to the end of the COBRA coverage, notify the qualified beneficiary of the termination date and conversion privileges, if any.
• Provide monthly reports on those who are enrolled and those with pending enrollment.
• Provide web access for employee and employer reporting.

Why Nyhart?

Our clients regularly recognize us for the level of service we provide and the attention to detail, independent voice and reliability of our COBRA services. We are extremely client-driven.

Dedicated teams, direct access

Each client at Nyhart has a dedicated team of actuaries, plan advisers and administrators. We provide you direct access to your team so your questions and issues can be handled confidentially by a team who knows your COBRA plan and can immediately help you resolve your issues.

Ask Nyhart

Do you have an COBRA question or are interested in learning how Nyhart may be able to provide the long-term partnership to help you administer COBRA for your company or government agency? Please call us at (317) 845-3500 or email us at connect@nyhart.com today and we will be in touch quickly. We want to earn your business!