Under federal and state laws employees have a right to continue employer-paid coverage when they leave their position. If the company has more than 20 employees (including part-time, the company is required to offer COBRA Continuation of Coverage.
COBRA regulations bring with them many notice and time-sensitive requirements. The penalties for non-compliance can be very steep. A COBRA qualifying event allows those covered under the plan to continue coverage for up to 18 months. Longer terms may apply in certain situations.
It is the employer's obligation to comply with COBRA & all of its requirements.
If the company has less than 20 employees in the last calendar year, they are subject to Louisiana State Continuation of Coverage. Employers are not required to notify employees of the right to continue coverage. However, if employees request continuation of coverage within the specified time, they are required to allow continuation for up to 12 months.
In both cases, employees are required to pay 100% of the premium. Under COBRA, the employer can charge a 2% administration fee on top of the premium. Go to http://www.dol.gov/ebsa/ for more information on compliance with employee benefits rules and regulations.
Affordable Health Plans | Business Insurance Group
3445 North Causeway Blvd, Suite 605 Metairie, LA 70002 Phone: (504) 837-0110 Fax: (504) 828-9395
