Handling COBRA benefits can feel like a big responsibility for employers, especially with all the rules involved. COBRA (which stands for the Consolidated Omnibus Budget Reconciliation Act) lets former employees keep their health insurance for a limited time after leaving their job. While it sounds simple, many companies make common mistakes that can lead to fines or unhappy former employees.

Here are the top seven COBRA administration mistakes employers make — and how you can avoid them.

1. **Missing Deadlines**
Timing matters with COBRA. Employers must send a COBRA notice within 44 days after someone loses coverage. Missing this window is a common slip-up. Tip: Set reminders or use a service like https://employeebenefitscompanies.com/cobra-administration/ to stay on track.

2. **Forgetting to Offer COBRA**
Sometimes employers don’t tell eligible individuals that they can keep their benefits. Whether someone quits, gets fired, or has reduced work hours, they might still have the right to continue health coverage. Always check whether COBRA applies.

3. **Sending Incomplete Notices**
The COBRA election notice must include specific details like coverage length and cost. Skipping any of this can cause confusion or legal trouble. Double-check your notice templates to make sure they have all the info.

4. **Charging the Wrong Premium Amount**
You can charge up to 102% of the health plan cost, but some employers miscalculate. Being off by even a few dollars a month can snowball into payment issues. Work closely with your HR or payroll folks to get the numbers right.

5. **Not Tracking COBRA Payments**
Keeping up with who has paid (and when) matters. If someone misses a payment, there are grace periods to honor before coverage ends. Make sure the system you use can log payments correctly.

6. **Not Documenting Everything**
If a former employee ever says they didn’t get a notice, having proof you sent it is key. Keep records of all notices and when you sent them — even if it’s just a screenshot or post office receipt.

7. **Trying to Do It All Alone**
Managing COBRA rules without help can lead to mistakes. Outsourcing or using software may seem like an extra step, but it can save time and stress in the long run.

Getting COBRA right helps you avoid penalties and keeps your employer reputation safe. These mistakes are common, but with a little care, they’re also easy to avoid.