Employee COBRA

Related Topics

Benefit Plan Setup

COBRA Notification and Election Letter

Employee Termination

Other Details for Benefit Assignments

The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 requires most employers to offer health insurance continuation to employees and their dependents. Compliance requirements include a notification and election form that needs to be delivered when an employee's dependent becomes ineligible for coverage or when an employee separates from the organization or otherwise becomes eligible.

Employee COBRA Details supply information for this COBRA notification letter and election form.

Whenever an employee or an employee's dependent becomes eligible for COBRA coverage, record one Employee COBRA Detail per eligible benefit.
To print the required notification and form for an eligible individual, open the Report Navigator. Generate report FRM00007, the COBRA Notification and Election Letter, for the employee who is affected or who has a dependent affected. Optionally, load letterhead into the printer. Click on the Print icon. Additional information can be written on the report to complete it.
Mail or otherwise deliver the notification and election form.
After the employee or dependent responds, record the accepted or declined elections. Per coverage that is accepted or declined, edit the applicable Employee COBRA Detail records for the employee.

Accepted. If elected, record the COBRA-coverage begin date and end date. Managing COBRA continuation premiums and billing can be handled through a benefits administration service or through a separate accounts payable system.
Declined. If declined, select the COBRA Declined checkbox, and select the Declined Code, and theDeclined Date when the eligible individual declined COBRA coverage on the COBRA notification and election form.

Keep all documentation required by COBRA regulatory guidelines on file.

Business Scenario

A COBRA notification and election can be generated whenever applicable by adding the necessary Employee COBRA Detail records for each COBRA-eligible benefit plan and then printing the FRM00007 report.

Additionally, as part of the Termination Wizard, a shortcut on the Termination Wizard's "post-termination events" panel provides access to the Employee COBRA Detail screen.