Who pays for COBRA coverage or the alternatives?

Individuals usually pay the cost of COBRA coverage and COBRA alternatives. Employers and/or former employers are allowed to pay for the coverage, but this is unusual.

If an employer wishes to pay the cost of COBRA coverage for a former employee, perhaps as part of a severance package, federal tax law now requires that this provision be included as part of the formal written health plan for all employees on a non-discriminatory for plan years beginning after 2010. 

revised 1/8/11

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