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COBRA

COBRA Compliance: What Employers Need to Know

Published March 20, 2026 by NBS Team

COBRA (Consolidated Omnibus Budget Reconciliation Act) requires employers with 20+ employees to offer continuation of health coverage to employees who lose their benefits due to qualifying events.

Qualifying Events

Common qualifying events include voluntary or involuntary termination, reduction in hours, divorce, dependent aging out, and death of the covered employee.

Compliance Deadlines

COBRA penalties can reach $110 per day per qualified beneficiary for non-compliance. Timely notification and proper election tracking are critical.

How NBS Helps

NBS handles all COBRA administration including qualifying event notifications, election tracking, premium collection, and compliance calendar management — so nothing slips through the cracks.