COBRA Compliance for Companies with 20+ Employees

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What is the primary reason most employees do not elect COBRA?

Employers discourage employees from electing COBRA.

COBRA is expensive and employees have to bear the full cost. (correct)

They are not eligible for COBRA benefits.

It is a very time-consuming process to enroll in COBRA.

How can employers avoid steep penalties related to COBRA?

By informing departing employees about COBRA benefits informally.

By delaying the formal notification about COBRA rights to departing employees.

By outsourcing COBRA administration to specialized companies. (correct)

By not offering COBRA to departing employees.

What is the key responsibility of employers regarding COBRA enrollment?

To delay notifying employees about their COBRA rights.

To cover all COBRA costs for departing employees.

To ensure departing employees understand the COBRA enrollment process. (correct)

To discourage employees from electing COBRA benefits.

What happens to the cost of health insurance premiums for employees when employment ends and they elect COBRA?

The employee is now responsible for 100% of the premium plus a 2% administrative fee. Signup and view all the answers

What must the employer (or TPA) do when a plan member or dependent loses their plan eligibility and wishes to participate in COBRA?

Send the member notice of their COBRA eligibility and the full premium amount. Signup and view all the answers

What is required for a plan member to continue benefits under COBRA?

Submitting a COBRA enrollment form and paying premium + 2% administrative fee. Signup and view all the answers

What does the plan administrator do with the 2% administrative fee in the COBRA process?

Keeps it as revenue Signup and view all the answers

If a member notifies the administrator to terminate COBRA, what action does the administrator take?

Notifies the insurance carrier to discontinue coverage Signup and view all the answers

In what situations might an employer offer COBRA to employees?

When required by law Signup and view all the answers

What is a common practice for employers in handling their COBRA benefits?

Contracting with a third-party administrator (TPA) Signup and view all the answers

COBRA Compliance for Companies with 20+ Employees

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Questions and Answers

What is the primary reason most employees do not elect COBRA?

How can employers avoid steep penalties related to COBRA?

What is the key responsibility of employers regarding COBRA enrollment?

What happens to the cost of health insurance premiums for employees when employment ends and they elect COBRA?

What must the employer (or TPA) do when a plan member or dependent loses their plan eligibility and wishes to participate in COBRA?

What is required for a plan member to continue benefits under COBRA?

What does the plan administrator do with the 2% administrative fee in the COBRA process?

If a member notifies the administrator to terminate COBRA, what action does the administrator take?

In what situations might an employer offer COBRA to employees?

What is a common practice for employers in handling their COBRA benefits?

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