VCS Group Inc. - Privacy Policy

COBRA The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 is a complex law with unique administrative challenges for employers. Severe penalties for non-compliance place employers at risk if they are unable to manage the administrative process in accordance with ever-changing COBRA regulations. VCS Group Inc. provides administrative services for COBRA /State Continuation Services eliminating the hassle and risk and allowing clients to focus resources on their business.

	What is COBRA? COBRA (Consolidated Omnibus Budget Reconciliation Act) became a law in 1986. COBRA gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan. COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
	What group health plans are subject to COBRA? The law requires employers with 20 or more employees, employee organizations, or state or local governments to offer COBRA health care continuation. Employers with less than 20 employees are not subject to COBRA, the federal law, although many states require insurers to extend mini COBRA coverage to eligible former employees and dependents.
	State Laws (Mini COBRA) State COBRA expansion programs (sometimes referred to as Mini COBRA) extend coverage to employees in firms with fewer than 20 workers who are not covered by COBRA, the federal law. Coverage under these state continuation programs may differ in duration, restrictions, and eligibility from the coverage provided to workers under the federal law. Information can be found on your state’s Department of Insurance website.

Who is entitled to benefits under COBRA? How does a person become eligible for COBRA continuation coverage? What process must individuals follow to elect COBRA continuation coverage? How long after a qualifying event does a person have to elect COBRA coverage? What are your state’s Mini COBRA laws? Is your business at risk for non compliance? For answers to these and all your questions contact VCS Group at 814-445-4943 for information about COBRA Administrative Services.