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Employee COBRA
Details
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.