General COBRA Information
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of 1985. If you have 20 or more employees, you are subject to a law known as the Consolidated Omnibus Budget Reconciliation Act of 1985, better known as COBRA. COBRA requires employers to offer individuals who would otherwise lose benefit protection the option of continuing to have group health care plan coverage.
The new COBRA Final Regulations which took effect on January 1, 2000, require that all employees and spouses be notified of their rights and obligations under the law. If you have not yet sent initial notices to all of your active employees and spouses currently covered under your group health plan, you should consider doing so to ensure that you are in compliance with the latest requirements.
The initial notice must be provided at the time the employee (and spouse, if applicable) first becomes covered under the plan. If an employee who is covered under the plan marries, and adds a spouse to be covered under the plan, the new spouse must be provided with written Notice of COBRA Rights and Obligations at the time coverage commences.