COBRA (definition)


The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires employers to offer continuous health care coverage to employees and their dependents who would otherwise lose their coverage due to termination of employment or other factors.

Any employer with 20 or more employees is a candidate for a COBRA audit. COBRA requirements are strict and fines and penalties for non-compliance are steep. Non-compliance can cost an organization thousands, even hundreds of thousands of dollars, in penalties, fines, medical claims and liability suits.

UnitedHealthcare provides

UnitedHealthcare makes it easy for your organization to follow COBRA's strict and complex rules. Our administrative services can address any number of qualified plans, employees, carriers and different coverage and rates.

Communication materials cover a wide range of mandated notices. In addition, reminders are sent to participants and qualified beneficiaries regarding their account status and new elections/termination information. Also, don't forget about ongoing e-news and COBRA regulation changes!

  • Sample Initial COBRA Rights Notice – provided to the employer for distribution
  • Qualifying Event Notice – sent via U.S.P.S with proof of mailing of qualifying event notices to employees and their qualified dependents to home addresses to limit employer liability
  • Confirmation Notices
  • Notice of Conversion Rights and Expiration of COBRA Coverage (where applicable)


  • Examination/reconciliation of current COBRA participants' account status for takeover
  • Printing and mailing payment monthly invoices to participants
  • Monthly premium collection from participants, including notices of partial or late payments
  • Annual reprinting and mailing of new payment coupons for renewal rate changes
  • Expedient review and processing of COBRA elections
  • Technical assistance for employer questions regarding COBRA administration
  • Toll-fee Customer Care Center support for participants
  • Monthly employer reports

Funding becomes a simple step when going through UnitedHealthcare.

  • Checks are made payable to UnitedHealthcare
  • Monthly reimbursement check along with a detailed report listing received COBRA premiums

Unlike other COBRA administrators, the 2% administration fee (per employee) is returned to you, the employer.

Compliance takes care of all archival data for compliance, providing the following:

  • Minimum seven (7) year archival of data for compliance
  • HIPAA compliant Certificates of Coverage

Administer your COBRA benefits online at

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