Stories, strategies, and tips for better personal finance. COBRA to the extent that the seller continues offering any group health plan following the transaction. Under COBRA, former employees, spouses, former spouses, and dependent children must be offered the option of continued health insurance coverage at group rates, which otherwise would be terminated. The first step for small business owners is to ensure compliance. If the election is made during that period, coverage must be provided from the date that coverage would otherwise have been lost, unless the employer group no longer offers a group health plan. We believe in delivering the perfect client experience and place the highest priority on protecting your confidential information. Employers who comply with the state and federal regulations should have nothing to fear if employees are aware of their rights. It should be noted that sometimes companies do not engage in COBRA compliance because they provided too much coverage.