| COBRA is a law that requires organizations
with 20 or more employees to offer the continuation of group
health benefits (Medical, Dental, Vision and Medical Reimbursement
Account) to employees (and covered dependents) upon experiencing
a "qualifying event."
Employers are required to provide initial COBRA notification
to covered employees and dependents, a letter detailing an
individual's rights upon experiencing a "qualifying event,"
and an explanation of the conversion privilege.
Qualifying Events include:
- Termination of Employment
- Reduction of work hours
- Employee’s Death
- Employee’s divorce (or legal separation in some
states)
- Medicare entitlement
- Change in “dependent” status
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Liability and risk