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COBRA PlansSince 1985, Federal law requires employer groups of 20 or more employees to offer a continuation of health insurance benefits to an employee or their dependents through the Consolidated Omnibus Budget Reconciliation Act. This law requires employers to recognize and respond to 'qualifying events', which occur to employees and their dependents, such as termination of employment, death of employee (for surviving dependents), children reaching dependent cutoff age and more. Recipients of COBRA are entitled to stay on the employer's group bill for a period of 18 months (29 months for disability, and 36 months due to death). The employee is responsible for full payment of premium by sending monthly check directly to the employer. The employer may add a 2% service fee to the premium amount to help with administration. Many employers are happy to outsource COBRA administration as it insures full compliance with Federal Law without the time and training required by in house employees. The Benefit Source offers free COBRA administration to employers who elect the Benefit Source as their agent of record. Three types of continuation of health insurance may apply if you are Illinois resident, COBRA (employer groups larger than 20 ees), Illinois State Continuation (Employers group under 20 ees.) and Spousal Continuation (Widowed or Divorced Spouse of employee over 55 years of age). For further information, visit the following links: Continuation Comparison, Illinois Department of InsuranceLink to States Department of Insurance |
The Benefit Source Inc. 340 W. Butterfield Road - Suite 4B - Elmhurst, IL 60126 800.530.1773 | 630.530.0125 | fax: 630.530.0221 Our privacy policy |