Compliance with COBRA statues is a huge administrative burden for many companies and it comes with the threat of stiff legal penalties. Rocky Mountain Reserve offers COBRA Administration services to reduce the risk of non-compliance and dramatically simplify HR paperwork!

What Employers Are Subject to COBRA?

Most group health plans of private and public employers are required to comply with COBRA. The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) says that any company with 20 or more employees must offer a “temporary continuation” of group health and Section 125 benefits. Some church plans and federal government plans are exempt, as well as small employers with fewer than 20 employees during the previous calendar year.

Note: Regarding State Laws. Many states have health continuation coverage laws. Employers need to be aware of state-law requirements that may affect their business or their health plans, in addition to the obligations imposed by COBRA. The COBRA services from Rocky Mountain Reserve include the management of state and federal laws.

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