COBRA
COBRA is a federal law that affects companies with more than 20 employees.
Under COBRA, benefits can continue if an employee:
- Quits the job
- Was terminated from the job (unless it was due to gross misconduct)
- Had coverage through a spouse’s employer, but is now getting divorced
- Had coverage through a spouse’s employer, but the spouse has passed
away
- Is a dependent on the plan, but has graduated from college or has aged
out of the plan
Time limits for continuation of benefits depends on the circumstances that
caused the need for COBRA. Under this law, the employee is responsible for
100% of the premium, and the employer may charge a 2% administrative fee for
keeping the employee on the plan.
NationalHR will:
- Send out the notices to those with a qualifying event
- Keep a record of the notices as evidence that they were received
- Answer any questions the former employee may have once the ties are severed
- Enroll the employee in the proper plan
- Allow the employee to change his or her plan and/or company at the point
of entering COBRA
- Facilitate all billing
NJ Continuation
NJ Continuation is a state law that affects companies with less than
20 employees.
In September, 2005, the New Jersey law was amended to virtually mirror the federal COBRA law. Dependents in these small groups can now continue coverage under the same circumstances that apply to larger groups.
Like COBRA, the employee is responsible for the total premium under
NJ Continuation, and is also subject to a 2% administrative charge by the employer.
NationalHR will:
- Send out any necessary notices
- Keep a record of the notices as evidence that they were received
- Answer any questions the former employee may have once the ties are severed
- Enroll the employee in the proper plan
- Allow the employee to change his or her plan and/or company at the point
of entering Continuation
- Facilitate all billing
HIPAA
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) can
be a drain on your company’s recordkeeping and personnel because every
business must fulfill HIPAA requirements. These include:
- Availability of a written policy
- Appointment of a Privacy Officer
- Implementation of procedures to ensure the privacy of medical records
in the workplace
NationalHR’s team is already up to speed on HIPAA requirements and
can take over on all phases from preparing your policy, to serving as your
Privacy Officer. Taking over Privacy Officer duties offers you a significant
advantage because employees are more inclined to trust their confidential information
with someone they don’t work with on a day-to-day basis.
NationalHR can make you an employer of choice. To find out how, contact
us at 856-810-0700.
