more-arw search

Q&A Forum

Insperity: Cobra fees due upon termination?

Karen S's Profile

Hello Everyone,

We are hoping to move away from Insperity, but are being told that we will have to pay $1,500 per individual currently registered with Cobra (due to the account terminating), and then an additional $250/pp per month in ongoing Cobra fees. Has anyone experienced this? Can we force the employees on Cobra onto the new provider's Cobra rather than them remaining with Insperity, or is there some other way around this?

My previous experience with another vendor was that anyone on Cobra had to choose a new Cobra plan with the new provider.

Thank you


Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

You only have to pay Cobra if you are firing an employee. If you are moving out of a PEO and into either another or your own company again, make sure their medical benefits start on day 1.

No COBRA payments.

Tell the person who is quoting you to give you the section of the law where it states that this must happen.

Just remember, if you don't have medical benefits day 1, then your employees will be due COBRA.


Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email [email protected] to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.