Consolidated Omnibus Budget Reconciliation Act

Understanding COBRA

Administration for terminated employees is never an easy task. However, the Consolidated Omnibus Budget Reconciliation Act of 1985, COBRA, requires that certain employers continue to offer coverage in their group health plan to particular former employees, retirees and their families.

A company may receive a penalty of $100 per day, per violation, for each qualified beneficiary during a non-compliance period. With all the legalities, rules and regulations, Benefit Advantage can make sure your business is compliant with current, new and proposed COBRA policies.

It's not easy to keep track of the various components of COBRA. Who must comply with Federal Laws? What are the continuation coverage requirements? Are all notification requirements being done on a timely basis? Let Benefit Advantage eliminate the risk of non-compliance penalties.

Administrating COBRA

Benefit Advantage makes administrating COBRA easy! Once the client provides Benefit Advantage and their Carrier(s) with notification of a qualifying event, we send a notification letter and an election form to both the Qualified Beneficiary and dependents (when applicable).

When the election form is received with payment, Benefit Advantage sends the Qualified Beneficiary a letter indicating reciept of the enrollment form and coupons for future payments. Benefit Advantage notifies the insurance carriers to reinstate coverage.

The Health Benefit Plan Certification of Creditable Coverage is sent when Benefit Advantage provides the service (as subject to HIPAA). Monthly premiums are collected by Benefit Advantage. Once a month, activity reports and premium payments are sent to the client for reconciliation.

If at any time during the COBRA coverage there is an additional qualifying event, the participant will notify Benefit Advantage within 30 days. Upon notification, Benefit Advantage will then send a subsequent notification letter to the Beneficiary of additional coverage periods available.

If at any time during the COBRA coverage there is a plan or rate change, the Client or Agent will notify Benefit Advantage 60 days in advance to ensure proper notification is sent to COBRA participants.