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COBRA Administration

THE CONSOLIDATED OMNIBUS RECONCILIATION ACT of 1985 (COBRA), enacted into law in April of 1986, generally provides that employers who sponsor group medical, dental, vision, flex and EAP (if it has a medical component like counseling) health plans must permit covered individuals who lose coverage under the plan, as a result of certain events, to elect to continue their coverage under the plan for a prescribed period of time on a self-pay basis.

Failure to provide notification or failure to adhere to the COBRA regulations can result in severe penalties and possible litigation.

The HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT of 1996 (HIPAA) was signed into law in August of 1996. This law includes important protections for people who have pre-existing medical conditions or might suffer discrimination in health coverage based on a factor that relates to an individual’s health.

Group health plans and insurers are required to provide proper documentation that certifies the creditable coverage an individual has earned. This “Certificate of Creditable Coverage” must be provided automatically when an individual either loses coverage under the plan or becomes entitled to elect COBRA continuation coverage, and when an individual’s COBRA coverage ceases.

DEPARTMENT OF LABOR GENERAL NOTICE is also a requirement. You must provide this notice to all employees who participate in your group health plans. This will provide them with useful information should they lose their coverage.


Reasons why you might consider outsourcing your COBRA Administration:

  • If you currently administer the COBRA/HIPAA processes at your organization, you already know that processing the required documentation is very complicated and labor intensive!

  • Our staff will help you with this intensive process by giving you the support you need, by taking care of all related COBRA/HIPAA paperwork and by ensuring that your plan is administered within the required compliance guidelines.

  • Between our Certified COBRA Administrators and our software vendor, we ensure that you stay in compliance. Benefit Strategies has developed a program that makes meeting your specific State and Federal requirements affordable, easy and reliable.

  • With Benefit Strategies as your COBRA Administrator, you have the option of calling our offices to inquire about activity on your account or checking a participant’s status via our web site.

  • Not only will we support you and your HR staff, we will also support your employees who have questions regarding COBRA and all current COBRA participants via our telephone support network.

  • Think about how easy it would be to let your employees know they can call us directly with inquiries!

Brief Overview of COBRA Services:

  • Prepare necessary correspondence to plan participants, as required
  • Collect, record and forward premiums
  • Communicate of Open Enrollment plan and rate changes to COBRA participants
  • Interact with carriers
  • Provide Internet access for plan sponsors and plan participants


Frequently Asked Questions


Forms and Resources

Please visit our Forms and Resources page for information, downloads, and answers to your important questions regarding COBRA Administration.

 

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For more specific details regarding our services and fees, please contact our Sales Department at (603) 647-4666 or visit our Proposal Request page.