The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires that employers provide former employees and dependents who lose group health benefits with an opportunity to continue group health insurance coverage for a limited period of time. Compliance with the complex rules regarding COBRA coverage can be difficult and mistakes can be costly. Penalties for non-compliance can include IRS excise taxes and ERISA statutory fines. This article provides practical information and tips for avoiding these penalties and other risks, such as law-suits to compel coverage and adverse selection of COBRA coverage.

Read the Top 10 COBRA Mistakes and How to Avoid Them.