COBRA and State Continuation Responsibilities

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COBRA and State Continuation Responsibilities

March 13, 2018

ERISA fiduciary requirements mandate employers check up on their COBRA adherence procedures regularly.  COBRA is a federal law that was passed in 1985. It allows employees to keep health care coverage under their employer’s group plan for a temporary amount of time after experiencing a qualifying major life event that would result in coverage termination. ERISA fiduciary rules require group plan administrators to review the services of plan vendors, including entities that may provide them with COBRA and state continuation of coverage administrative services.

State Continuation is very similar to COBRA but applies to businesses that employ fewer than 20 employees. State Continuation laws vary from state to state. Group clients are bound by law to regularly make sure vendors are charging reasonable fees and performing all duties competently and in the best interest of the plan.

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If you have questions about these requirements, contact Diane Campanile at or 844-LyonsHCM (844.596.6742)