An employer must notify an employee of their Consolidated Omnibus Budget Reconciliation Act (COBRA) rights when there is a COBRA-qualifying event such as a voluntary or involuntary termination of employment for reasons other than gross misconduct  or reduction in the number of hours of employment

The employer is responsible for providing HNE with the termination date from the active plan. You can process this transaction on HNE Direct. The employer also must notify HNE if the employee has elected COBRA. NOTE: COBRA reinstatements cannot be processed on HNE Direct. A non-COBRA reinstatement of coverage can be processed on HNE Direct.

HNE offers two ways to COBRA bill:

1. Direct COBRA Billing: If you are set up for Direct Bill COBRA and receiving a bill for your COBRA participants, you will be expected to collect the premium and submit to HNE. The bill will have a separate division for COBRA participants.
2. Individual COBRA billing: If you are set up with Individual Bill COBRA, the premium invoice will go directly to the COBRA participant. You are not responsible for collecting the premium.http://03c4283.netsolhost.com/employer/wp-content/uploads/2013/04/137305620.jpg

Please note: HNE is not a COBRA Administrator. HNE provides COBRA billing options, but COBRA administration remains the employer’s responsibility.

If you are interested in changing to an Individual Bill COBRA arrangement, contact your Sales Account Executive to assist you. You can make this billing change only during your annual anniversary period.

If you need further information about COBRA, the Employee Retirement Income Security Act (ERISA) or the Health Insurance Portability and Accountability Act (HIPAA) you can get that information in any of the following ways:

• Call (toll-free) 1-866-444-EBSA (3272) to reach the Employee Benefits Security Administration regional office nearest you
• Visit the agency’s Website at http://www.dol.gov/ebsa/COBRA.html
• Consult your company’s legal counsel

Please contact www.mass.gov for more information on mini-COBRA (the state law that gives employees of small businesses the ability to purchase continuation health insurance after they leave employment). Your Sales Account Executive can also provide you with the most current COBRA notification letter.