Cobra

What is COBRA continuation coverage?

COBRA - the Consolidated Omnibus Budget Reconciliation Act (wow, that’s a mouthful!) - requires employers with 20+ employees with group health plans to offer continuation coverage to those that qualify when group health coverage would otherwise be lost due to certain qualifying events.

About COBRA Allies

How does COBRA impact you as an employer?

There are federal and state penalties for non-compliance!

$2,500 for each beneficiary who has been affected by noncompliance or $100 for each day of noncompliance, whichever is greater. (IRS Excise Tax)
$100 per individual / $200 per family for each day of COBRA noncompliance (ERISA)
$110 per day for noncompliance with regulated notices (ERISA)

And to make matters worse, beyond the fines, non-compliance can lead to civil penalties that may make your company liable for medical payments, legal fees, and more.

How can COBRA Allies help reduce your risk and liability?

The US healthcare system and its associated rules and regulations are perpetually changing. Our government’s laws are full of bureaucracy and lawyer-speak. Let us navigate COBRA compliance for your team so you can focus on what you do best.

Rely on us.

Implementation

Gather all required information and manage your implementation into our COBRA portal.

Communication

Ensure all COBRA required notices are sent within the required timeframes.

Premium Collection and Remittance

Collect COBRA premiums and remit to partner/carrier.

Termination/End of COBRA

Track timing of termination of COBRA benefits and send required notice.

Compliance

Manage COBRA timelines, premium tracking and ensure all notifications will include required regulatory language.

Plan Renewal Processing

Handle open enrollment notices for all cobra participants and manage any plan changes they make.

Reporting

Provide a SECURE employer, broker and participant web portal for access to financial and administrative reports such as premium detail, participant notifications, coverage, terminations and more .

Advantages to letting us do your heavy lifting

Lower your administrative burden and costs

No need for specialized infrastructure or software or manual tracking that burdens your HR staff.

Track timetables

Timing is critical for COBRA compliance. Once the employer starts the separation process, we track the required timelines.

Avoid difficult personnel issues

Separation of an employee, whether voluntary or not, can lead to emotional, difficult situations. Ensuring fairness and compliance by strictly enforcing rules and regulations, while supporting the participant through the process will help avoid conflict and protect the employer.

Mitigate Risk

Protect your business from expensive fines and legal challenges.

Still have more Questions?

If you have any more questions after reading through the available resources, please contact us here.

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COBRA