- 1). Notify employees of their COBRA rights when they elect medical coverage. When a qualifying event occurs, the qualified individual has 60 days to inform his employer; in turn, the employer has 14 days to inform the qualified individual of his rights to continue coverage.
- 2). Send notices to employees, former employees, their spouses and children within 14 days of a qualifying event.
- 3). Track the qualified individual for 105 days to determine if she has elected coverage and made payment of the premiums. The individual has 60 days to elect coverage and an additional 45 days to make payments. The total amount of time a person has to elect and pay for COBRA coverage is 179 days.
- 4). Outsource all or part of your COBRA plan if there is concern about proper tracking and compliance. When outsourcing your COBRA plan, make sure the vendor is aware of the federal guidelines and has all of your company information so he is able to provide the service correctly. Using a vendor does not negate the employer's responsibility for maintaining compliance or subjectivity to penalties.
- 5). Review federal guidelines for COBRA when administering the plan.
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