The risk is in the timing, not the concept.
COBRA itself is straightforward: when someone loses coverage through a qualifying event, they get the right to continue it at their own cost for a defined period. The exposure comes from the mechanics — specific notices, specific deadlines, and the ability to prove years later that you sent them.
Miss a notice window and the potential consequences include statutory penalties and liability for claims the person would have had covered. This is not a task that rewards good intentions and a spreadsheet.
We pair client groups with a professional COBRA administrator. Notices go out on schedule, elections and premiums are tracked, and the documentation exists if it is ever needed.
- General notice at plan entry and qualifying event notices on schedule
- Election period tracking and reminders
- Premium collection and remittance, including grace period handling
- Documentation retained for audit
- Washington continuation rules accounted for alongside federal COBRA
- Termination notices when continuation coverage ends
COBRA, answered.
Does COBRA apply to our business?
Federal COBRA generally applies to group health plans at employers with 20 or more employees. Smaller Washington employers may still have continuation obligations under state law, which is why "we are too small for COBRA" is worth verifying rather than assuming.
Who pays for continuation coverage?
The individual, and they can be charged up to 102 percent of the full premium to cover administration. The employer is not subsidising it unless you choose to as part of a severance arrangement.
What counts as a qualifying event?
Termination other than for gross misconduct, a reduction in hours below eligibility, divorce or legal separation, a dependent aging off the plan, and certain other events. Each carries its own notice timing.
What happens if we miss a notice?
Exposure can include statutory penalties and responsibility for claims the person would have had covered. This is precisely why it belongs with an administrator whose only job is hitting those dates.
The rest of the administration.
Take COBRA off your plate.
Set up alongside your existing plan without changing carriers.