Understanding COBRA

COBRA is the right of a terminated employee or an employee who has moved to part-time to continue coverage under their employer's health insurance. In the majority of cases, an employee's COBRA coverage remains identical to their previous coverage, along with all their plan selections and plan services. The employee's copay amount and deductible remain the same as well, along with their coverage limits, as well as any carrier rules for filing claims. COBRA participants also have the right to participate in Open Enrollment and choose new plans.


Employee Eligibility When a Company Goes Out Of Business

If a company closes its doors, employees cannot participate in COBRA because there is no health plan to continue coverage under. Employees who lose their health coverage in this... Learn more

Eligibility for COBRA

In general, employees who were previously actively enrolled in health insurance coverage for at least one day, but lost it due to a change from full-time to part-time employment... Learn more

COBRA Election Deadline

Employees eligible for federal COBRA coverage must elect COBRA coverage within 60 days from the employee's insurance termination date, or for state COBRA, the date specified on ... Learn more

Determining Federal vs. State COBRA

Generally, the COBRA type offered to employees is determined by the number of full-time employees and FTEs in the employees' company. Federal COBRA generally applies to c... Learn more

Federal COBRA Durations and Qualified Beneficiaries

Eligible qualified beneficiaries and the maximum length of Federal COBRA coverage are determined by the type of qualifying event. For more information about gross misco... Learn more

Understanding Carrier Administered State COBRA

Carrier administered state COBRA is a direct relationship between the employee and carrier, since the employee is no longer affiliated with the employer's group plan. If de... Learn more

Key Terms for COBRA

This page lists important terms to know when dealing with COBRA in Zenefits. COBRA Terminology Administration Fees are charged to participants (on top of premium payment ... Learn more

COBRA Minimum Eligibility Rules

In some states, employees must have been active on benefits for a minimum number of months prior to moving to part-time of being terminated in order to be eligible for COBRA. Th... Learn more

COBRA and Cancelation of Group Insurance Policies

In the event that a company cancels their group insurance policy/policies, any COBRA enrollees on those plans will experience a qualifying life event (QLE). This is considered a... Learn more

Important Information about Your Rights to COBRA Continuation Coverage During the COVID–19 Pandemic

This summary provides important information about temporary relief that may be available to you and/or your family members if you are enrolled in (or become newly entitled to) c... Learn more

Notice of Ending of Certain COVID-19 COBRA Election Time Frame Extensions - February 26, 2021

The Department of Labor (DOL) released Employee Benefits Security Administration Disaster Relief Notice 2021-01 on February 26, 2021 (the “Updated Outbreak Guidance”). The Updat... Learn more

ARPA: AEI Status Update Process on COBRA Portal

Employer System Functionality  There are multiple areas in the employer portal that they can designate/update a consumer’s AEI status. Option 1: Update each member status manual... Learn more

Important ARPA Update: Employer AEI Identification and Notice Obligations

The U.S. Department of Labor (DOL) issued guidance under the American Rescue Plan Act of 2021 (ARPA) and provided model notices to assist employers with fulfilling their employe... Learn more

American Rescue Plan Act (ARPA) of 2021 FAQ

What are key dates to ensure compliance to American Rescue Plan Act of 2021? ARPA includes a provision for a COBRA continuation coverage premium subsidy of 100 percent for indiv... Learn more

COVID Relief COBRA Subsidy: AEI 2021 Premium Assistance Credit Report on COBRA Platforms

The COVID Relief COBRA Subsidy is part of the American Rescue Plan Act (ARPA) of 2021 and provides six months of 100% subsidized COBRA coverage, from April 1, 2021 through Septe... Learn more

Still need our help? Our support team is waiting to help you. Contact us