What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102% of the cost to the plan.
Who Must Offer COBRA?
Any employer with 20 or more employees in the previous calendar year who sponsors a group health plan. Some states have “mini-COBRA” continuation requirements for smaller employers.
Avoid notice mistakes with PrimePay!
Who is PrimePay?
Our mission is to make payroll and HR complexity disappear. We’ve packaged 38 years of experience and an unrelenting commitment to service into an intelligent, versatile HCM platform. A platform defined by options and designed to deliver exceptional “I can’t believe how simple that is” experiences for HR and finance pros and every employee. This is how you replace manual work and frustrating spreadsheets with digital speed. It’s how you replace the compliance worries with confidence it’s all taken care of. And it’s how you finally stop wasting time on things that should just work, so you can get back to work.
PrimePay
The person to whom premiums would have been payable, also referred to as the “premium payee,” is entitled to a refundable and advanceable credit equal to the premiums that would have been charged to eligible individuals in the absence of premium assistance plus certain administrative costs.
COBRA premium assistance credit amounts are first applied against the employer portion of Medicare tax, reduced by applicable emergency paid sick leave, extended family and medical leave, and employee retention credit amounts, and can subsequently be applied against other employment taxes.
COBRA Compliance Isn’t Optional — But It Can Be Easier
PrimePay handles all COBRA administration so you can focus on your business, not federal regulations.
PrimePay COBRA Administration Includes:
✔ Automated COBRA timelines & notifications
✔ All notices delivered on time
✔ Eligibility tracking & documentation
✔ Participant billing & payment management
✔ Reporting for audits and IRS compliance
Avoid penalties & excise taxes: $100+ per day per violation
COBRA premium assistance credit amounts are first applied against the employer portion of Medicare tax, reduced by applicable emergency paid sick leave, extended family and medical leave, and employee retention credit amounts, and can subsequently be applied against other employment taxes.
PrimePay’s COBRA solution
Schedule a free consultation — no hard pitch. Just answers, clarity, and options for your business.
Who Should I Contact for Questions?
Who Should I Contact at ClaimLinx for Questions?
You can reach our Member Services team by phone or email for help with portal registration, EOB questions, or mailing requests. Contact information is available on our Contact Us page.
