COBRA and State Continuation Coverage

Offered by Paychex, Inc.

With major healthcare reform still on the horizon, new COBRA The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives many workers and their beneficiaries the right to continue their group health plan for limited periods of time following termination, loss of hours, or other qualifying life events.

Employers offering group health insurance plans that have 20 or more employees on at least 50 percent of the typical business days in the previous calendar year may be subject to Federal COBRA requirements. and state continuation Most states pick up where COBRA leaves off, by requiring businesses with 2 to 19 employees not subject to Federal COBRA to offer a state version of continuation coverage.

The following states do not require state continuation coverage:

- Alabama
- Alaska
- Arizona
- Delaware
- Hawaii
- Idaho
- Indiana
- Kentucky
- Michigan
- Montana
- Washington

For more about your state's continuation requirements, speak with a licensed Paychex Insurance Agency Representative at 877-393-8868.legislation has already been signed into law. Paychex continually monitors these laws, and helps you plan for the financial impact future regulations may have on your business.

COBRA Administration Service

Leave the paperwork and daily administrative tasks to Paychex, including:

• Starting and maintaining your program, or managing your existing program.
• Sending timely notices to qualified employees.
• Receiving and remitting participant payments.
• Tracking terminations when integrated with Paychex Payroll.
• Helping your business comply with COBRA-mandated programs.
• Providing Web-based, self-service convenience for accessing your plan information, adding new plans, and entering qualifying events.
• Answering your questions, and those of employee participants, through a toll-free support line.

Easy Plan Management through Payroll Integration

The COBRA Administration Service combines your COBRA plan with Paychex Payroll to reduce your administrative burden.

Combining COBRA with Paychex Payroll
Things to Do	Without Payroll Integration	With Payroll Integration
Send initial COBRA notice for new hires	Employer must remember to submit request to Paychex	Paychex automatically reminds employers to submit request
Send COBRA notice upon termination	Employer must remember to submit request to Paychex	Paychex automatically reminds employers to submit request

Even Better Plan Management through Insurance Integration

When you offer group health insurance through Paychex Insurance Agency, the COBRA Administration Service reduces your administrative burden even more.

With Health Insurance through Paychex Insurance Agency
Things to Do	Without Payroll Integration	With Payroll Integration
Track eligibility of new hires	Employer	Paychex
Remove terminated employees from coverage	Employer	Paychex
Communicate enrollments to the carrier	Employer	Paychex
Communicate terminations to the carrier	Employer	Paychex
Make premium payments on-time	Employer	Paychex*
* Availability depends on carrier selection.

Testimonial

"I can't say enough good things about the overall Paychex service, including COBRA administration, which reduces time and administration hassles. Paychex has put together a solid product, one that is well thought out, and makes my job easier and saves an enormous amount of time."

Dean L. Locke, Owner
Dean Locke Custom Carpentry

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