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By brian barrick
June 05, 2012

Do you have employees that participate in your health plan? Is so, are you complying with your obligations under COBRA (Consolidated Omnibus Budget Reconciliation Act) when you lose an employee? Remember that the ex-employees only qualify for COBRA if they participated in your health plan while they were employees. Next you must notify employees about COBRA when they’re hired, ex-employees, and spouses and dependents of ex-employees. Third, you should notify ex-employees within 14 days of receiving information of a COBRA-qualifying event by sennding it to there home address. Make sure that you have a return reciept when mailing this and keep copies of any notifications you make. Finally, the following are COBRA-qualifying events and require a notice to be sent:

  • Employee leaves or is terminated for any reason.
  • Employee’s hours are reduced or any other condition renders the employee ineligible for further participation in your health plan.
  • Employee dies.
  • Divorce or legal separation.
  • Employee is eligible for Medicare.
  • Dependent child no longer qualifies as a dependent.
  • Retiree health benefits are lost because the company goes bankrupt.

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