COBRA Administration

Why COBRA gets employers in trouble

COBRA is not complicated in concept. An employee leaves, and they get the right to continue their group coverage at their own expense for a defined period. What causes problems is that the obligation is built entirely out of deadlines, and the deadlines run whether or not anyone at your company is tracking them.

The notice requirements are specific, the timing is specific, and the documentation you would need if a former employee disputed what they received is specific. Missed notices carry statutory penalties per day per qualified beneficiary, which is why this is one of the first things we suggest an employer stop doing by hand.

What administration covers

• Initial general notice when an employee first enrolls in your plan
• Qualifying event notices when someone leaves or loses eligibility
• Election period tracking and confirmation
• Premium billing, collection and grace period monitoring
• Termination notices when coverage ends or premiums lapse
• An auditable record of what was sent and when

How we fit in

As your benefits broker we coordinate COBRA administration alongside the rest of your plan, so the same people who know your carriers and your enrollment data are handling continuation coverage. That matters most at the moments when an error is expensive: a termination during open enrollment, a reduction in hours, or a divorce or dependent aging off the plan.

If you already have a payroll provider or PEO handling part of this, we will look at what is genuinely covered before recommending you change anything.