BAS Blog

Question of the Week

Written by BAS | Apr 4, 2012 5:24:00 PM

Q- An employee on COBRA continuation coverage has a severance arrangement whereby we pay 50% of the cost of his COBRA continuation coverage. Can the 2% administrative charge get assessed on the full COBRA premium or only on the 50% of the premium that he pays?

A- The 2% administrative fee can is calculated on the full cost of COBRA continuation coverage, not only the amount the continuant pays out of pocket for coverage.