Blog - COBRA and the Affordable Care Act

COBRA and the Affordable Care Act

It seems there is something in the news daily regarding the many changes that will take place in January 2014 as a result of implementation of the Affordable Care Act.  We think you may find it ‘refreshing’ to know about something that will not change….  COBRA.

Even with the addition of the new Exchange, Employers with 20 or more fulltime employees will still be required to remain compliant with COBRA law. 

Some important things to remember:

  • These Employers are still required to offer continuation of COBRA eligible benefits to all employees who incur a qualifying event. 
  • The addition of an Exchange option does not relieve the Employer of the requirement to offer COBRA continuation. 
  • Qualified Beneficiaries must be notified of their COBRA continuation benefits so they can consider all options available to them and make an informed election. 

There is some speculation that the addition of the Exchange option will cause a direct decline in the number of COBRA elections.  Regardless of it this proves to be the case, the Department of Labor is clear – the requirement for Employers to offer COBRA at the time of a qualifying event will not change. 

For more information,  please see the link provided below of the DOL release regarding COBRA and the ACA.    

http://www.dol.gov/ebsa/faqs/faq-healthcarereform.html