COBRA Health Insurance 2026: Employer Requirements and Employee Rights

2026 COBRA continuation coverage rules, timelines, and notice obligations. Qualifying events, 102% premium, and compliance checklist for employers.

COBRA Basics

COBRA requires employers with 20 or more employees to offer continued health coverage after qualifying events such as termination or reduction in hours. Coverage must mirror the active plan and last up to 18 or 36 months depending on the event.

Compliance Essentials

  1. Timely notices: Provide the general notice within 90 days of plan enrollment and send election notices within 14 days of notification from the plan administrator.
  2. Accurate premiums: Calculate 102% of the total cost of coverage, including both employer and employee portions plus the allowed administrative load.
  3. Record keeping: Track every notice and election date to defend against DOL audits or participant disputes.

Best Practices for 2026

  • Automate qualifying event tracking with your HRIS.
  • Coordinate with payroll to ensure COBRA premiums are applied correctly each month.
  • Train HR staff on handling second qualifying events and disability extensions.

By mastering COBRA operations, employers protect employees during transitions and avoid costly penalties. Pair COBRA with a Section 125 plan for active employees and contact us for benefits support.