COBRA administration companies manage COBRA paperwork, administrative tasks, and maintain benefit compliance so your HR department can focus on business priorities.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) mandates that eligible employees and their family members be notified and offered the ability to elect continued health insurance coverage after leaving employment. To ensure that both employee benefits and COBRA coverage are running smoothly, the details are often best handled by a company that specializes in COBRA administration. Third-party administrators help businesses avoid COBRA violations by ensuring beneficiaries are properly notified of qualifying events (such as divorce or termination of the covered employee) and their eligibility for continued benefits, as well as provide support throughout the eligibility timeline.
If your organization has many employees, a high turnover rate, or prefers to outsource the administration of benefit compliance, consider a COBRA administration company to manage:
- Required notices of termination of benefits
- Notices of COBRA eligibility
- COBRA enrollment
- Election and payment deadlines
- Changes to plan options and COBRA laws
- Details regarding coverage timelines, and
- Rules regarding costs and payments
Mistakes in the administration of COBRA could lead to IRS penalties or lawsuits from employees who incurred expenses due to loss of insurance coverage. Safeguard your business by choosing a COBRA administrator with in-depth knowledge of federal and state continuation laws to manage your COBRA compliance and obligations.
