COBRA RESOURCE LIBRARY

Below are the 15 most asked COBRA questions from clients, covering key topics such as qualifying events, Mini-COBRA, premium collection, new hire notices, severance agreements, and COBRAFlex portal use—designed to help ESG clients stay compliant and informed.

1. What is the difference between COBRA and Mini-COBRA?

COBRA applies to employers with 20 or more full-time equivalent (FTE) employees and is federally mandated. Mini-COBRA laws apply to smaller employers, and administration varies by state. For example, Illinois Mini-COBRA provides 12 months of continuation coverage, while Arizona offers 18 months. Mini-COBRA notices are managed manually in-house. Note that dental and vision continuation is only offered under Mini-COBRA if the carrier permits it.

2. Do I need to send out COBRA notices? Who sends out the paperwork for terminated, resigned, or retired employees?

No, COBRA notification responsibilities are handled by ESG. Employers are only responsible for promptly notifying ESG of all qualifying events (QEs).

3. How do we report a qualifying event (e.g., resignation, termination, or reduction in hours) to COBRAFlex?

Qualifying events should be reported via the COBRAFlex portal, EASE, or Employee Navigator, depending on your chosen platform.

4. What are our responsibilities for providing COBRA rights to new hires? Does COBRAFlex send the Initial Rights Notification?

While COBRAFlex can distribute the Initial Rights Notice, we have streamlined the process by including a pre-prepared Initial Notification in the new hire onboarding package.

5. Should all coverages be terminated immediately upon an employee’s separation from employment?

Yes, all coverage should be canceled by the broker effective the date of termination.

6. If an employee elects COBRA or Mini-COBRA continuation, who collects the premium, and how much is the cost?

ESG is responsible for collecting premiums, which include a 2% administrative fee on top of the standard monthly premium. It's essential that current rates are on file, and any plan changes are communicated promptly at renewal.

7. Who reinstates coverage for a Qualified Beneficiary (QB) after COBRA is elected?

ESG handles communication and coordination with the client or broker to reinstate the Qualified Beneficiary’s coverage.

8. If our company is paying COBRA premiums as part of a severance package, how is this reported to COBRAFlex?

Even in employer-paid COBRA situations, the QB must complete standard election paperwork. ESG processes these elections as usual. Manual bookkeeping adjustments are made internally while the employer continues paying premiums directly. ESG does not collect funds in these scenarios.

9. When are premium reimbursements sent to the employer by COBRAFlex?

Reimbursements are issued quarterly, mid-month:

Q1 (Jan–Mar): Mid-April
Q2 (Apr–Jun): Mid-July
Q3 (Jul–Sep): Mid-October
Q4 (Oct–Dec): Mid-January

10. Does COBRAFlex provide an online portal for managing Qualifying Events and current QB information?

Yes, COBRAFlex offers a secure portal where you can submit Qualifying Events, view current QBs, monitor payment status, and manage other related tasks.

11. What happens if a Qualified Beneficiary (QB) fails to make a premium payment on time?

If a payment is missed, ESG notifies the client or broker by the 10th day of the month following the due date.

12. Is there a grace period for COBRA premium payments?

Yes. QBs have a 30-day grace period following the premium due date (typically the 1st of the month), as outlined in their Qualifying Event notice and premium payment coupons.

13. Will a QB remain on the employer’s monthly invoice if they elect COBRA continuation?

Yes, Qualified Beneficiaries remain on the invoice while enrolled in COBRA coverage.

14. How often does ESG report collected premiums and distribute funds back to the employer?

Premium reporting and fund disbursement are completed quarterly, following the schedule noted above.

15. If an employee voluntarily waives group coverage but continues employment and enrolls in Medicare, can their dependents remain covered under COBRA?

COBRA rights for dependents in this scenario depend on several factors, including whether the loss of coverage qualifies as a COBRA triggering event. Case-specific review is recommended.

ESG COBRA RESOURCE LIBRARY

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