Complying with COBRA

State Continuation is an employer/employee relationship for employers with fewer than 20 employees. Employers with 20 or more employees on staff for more than 50 percent of their ordinary business days in the previous year must comply with COBRA. To help Humana small business customers understand and comply with these requirements, we've included information about both types of continuation coverage below.

State Continuation coverage

Most states have State Continuation laws that require employers to offer former employees and their dependents continuation of health coverage when they no longer are active under the employer's health plan. States may have different eligibility requirements that employees will need to meet. Here are some common questions about State Continuation:

 

Where does the employee submit the State Continuation application? The employee will submit the State Continuation application to the employer. This notifies the employer that the employee elected State Continuation, enables the group to review eligibility, and allows for premium arrangements if required by the state.

How do the employee and employer know if they qualify for State Continuation? After Humana processes the State Continuation application, we'll send a confirmation letter to the employee and employer – or let them know that the employee does not meet state eligibility guidelines.

Where should the employer send the employee State Continuation application? The employer can send the application to Humana by fax to 502-508-9978, by e-mail to Continuation@humana.com (please note this is an unsecure e-mail address), or by mail to:

Humana
101 East Main St.
Louisville, KY 40202
Attention: State Continuation Department, 6th Floor

Whom do I contact with questions? Contact Humana Customer Care at 1-800-232-2006 or Continuation@humana.com (please note this is an unsecure e-mail address).

COBRA

The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) is an amendment to the Employee Retirement Income Security Act (ERISA) that allows employees who leave their employer to continue their health insurance coverage—for themselves and their dependents—at the employer's group rate. COBRA is available only for specific events —called qualifying events—and the former employee pays the full premium amount of the coverage.

Employers with 20 or more employees on staff for more than 50 percent of their ordinary business days in the previous year must comply with COBRA.

COBRA insurance administration, handled by Ceridian, is automatically included in coverage for Humana's fully insured customers at no additional cost. If you don't want this COBRA service, you'll need to sign a waiver form, which you can get from your agent or broker. COBRA insurance administration is available to ASOs for a minimal cost per month.

Here are some common questions about COBRA:

Why do I need COBRA administration services? COBRA guidelines are complex and can be difficult to administer, consuming valuable human resources time. Misinterpreting or misapplying COBRA guidelines can lead to lawsuits costing millions of dollars – just for missing one of the many COBRA deadlines.

How can Ceridian help me handle COBRA responsibilities? Ceridian can help by:

  • Reducing liability exposure for the plan administrator – The plan administrator is a human resources employee or representative that manages the plan for your company. ERISA penalties of noncompliance, per day per employee, may be imposed on the plan administrator, not the employer.
  • Keeping premium increases low – With more than 20 years of experience, and as the largest COBRA administrator in the United States, Ceridian has the expertise and technology to simplify your COBRA administration and keep you in compliance.
  • How do I implement COBRA administration services? Here are the three easy steps to COBRA administration services:
    1. Once Humana sets up your account, we forward your information to Ceridian—no more than 30 days before the policy's effective date.
    2. Ceridian contacts you to schedule an implementation call. If they can't reach you by phone, Ceridian will send you an implementation kit by regular mail or e-mail.
    3. Once you've enrolled, you can contact Ceridian with any COBRA questions.

How do I reach Ceridian customer service? Employers with questions can contact Ceridian at 1-866-250-9474. Hours are 8:30 a.m.–8 p.m., Eastern time, Monday through Friday. The Interactive Voice Response line is available 24 hours a day, seven days a week.

How can participants reach Ceridian customer service? After their qualifying event is registered with Ceridian, COBRA participants can call Ceridian at 1-800-877-7994. Hours are 8:30 a.m.–8 p.m., Eastern time, Monday through Friday. The Interactive Voice Response line is available 24 hours a day, seven days a week.