Clarity Benefit Solutions Discusses Four Common COBRA FAQs

Thursday, November 24, 2016 General News J E 4

NEW YORK, Nov. 23, 2016 /PRNewswire-iReach/ -- Clarity Benefit Solutions simplifies online employee benefit administration for brokers, employers, and consumers. The company's technology and services are designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.

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Navigating the rules and regulations of the Consolidated Omnibus Budget Reconciliation Act (COBRA) can be challenging. Clarity Benefit Solutions reveals four common COBRA FAQs.

1. What is COBRA? The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a health benefit that modifies the Employee Retirement Income Security Act, the Internal Revenue Code, and the Public Health Service Act. It mandates that group health plans provide a temporary continuation of group health coverage that otherwise might be terminated.

2. What does COBRA do? When someone is ineligible to receive the benefits of health insurance (most likely due to a qualifying event like a voluntary departure of layoff), an employer stops paying the employee's premiums. COBRA requires continuation coverage be offered to the employee, spouses and former spouses, and dependent children. It is usually more expensive since the employer no longer is contributing to the coverage.

3. How does an employer qualify for COBRA? COBRA eligibility depends on the size of the employer. To qualify for COBRA, the employer must have 20 or more employees.  COBRA applies to private-sector employers and most state and local governments of this size. The employee must have been enrolled in his or her employer's group health insurance plan on the day before the qualifying event occurred that caused the employee to lose his or her insurance.

5. What are the rules about informing employees about COBRA? It is the responsibility of group health plans to present covered employees and their families with notices that explain their COBRA rights. An employee should receive a Summary Plan Description (SPD) within 90 days after the employee first becomes a plan participant. A general notice must also be given to the employee and spouse that describes COBRA rights—also within 90 days.

Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.

Media Contact: Calvin Clark, Clarity Benefit Solutions, 732-428-8272,

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SOURCE Clarity Benefit Solutions



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