MANAGEMENT

Detailed explanation-1: -COBRA stands for Consolidated Omnibus Budget Reconciliation Act. It is related to the health insurance program that brings certain privileges for employees, so that they can continue benefits of their health insurance after losing jobs or/and, at time of reduction in their work hours.

Detailed explanation-2: -In fact, the law allows the employer to charge 102 percent of the premium, and to keep the 2 percent to cover your administrative costs. When an employee gets extended COBRA coverage due to disability, you can charge 150 percent of the premium for months 18 through 29. Timing of payments is important.

Detailed explanation-3: -COBRA requires you to pay 100% of the health insurance costs plus up to 2% in administrative fees. You have 60 days to sign up for COBRA, but premiums are retroactive if you wait. COBRA allows you to keep your employer-sponsored health insurance for up to 18 months after leaving your job.