As you know, the Consolidated Omnibus Budget Reconciliation Act (COBRA) offers employees a reliable safety net, as it provides access to benefits continuation in the event of job loss or other qualifying events. However, despite its benefits to employees, COBRA administration can be a compliance burden for employers and HR teams, with all of the notification deadlines, forms, and other requirements. Though COBRA administration can be time-consuming and tedious, it can run a lot smoother when you have the right tools to streamline the process. Instead of getting bogged down with deadlines and forms, you can manage COBRA administration with automated tools and add precious time back into your day.
The Challenges of Manual COBRA Administration
COBRA administration is challenging, in part, because of the many deadlines and qualifying events that can trigger coverage for an employee or their dependents. In addition, you also need to stay in compliance with state-specific mini-COBRA laws, which can vary from the federal requirements. If you’re managing COBRA with a manual process or outdated technology, you can quickly run into problems and make mistakes such as:
- Not sending required COBRA notices on time
- Excluding qualified dependents in COBRA coverage notices
- Miscalculating the period of COBRA coverage or terminating coverage too early or too late
Manual COBRA administration also carries other challenges, such as keeping track of COBRA paperwork, updating third-party carrier websites, and managing sometimes awkward communications with former employees who are electing COBRA.
5 Benefits of Automated COBRA Administration
Thankfully, Payroll Partners – partners with EverythingBenefits help you overcome the challenges of manual COBRA administration. The EverythingBenefits COBRA Administration solution automates close to every aspect of COBRA administration, eliminating the hassle that accompanies manual processes. The dynamic solution also keeps you in compliance with federal and state benefits continuation requirements.
Here are five benefits you can expect from the EverythingBenefits COBRA solution to help you stay in compliance and keep your COBRA activities running smoothly:
- Streamlined Communications with Carriers and Participants – The EverythingBenefits COBRA Administration solution manages virtually every aspect of COBRA communication with carriers and participants. The technology manages all notifications for initiating, terminating, and reinstating COBRA coverage, as well as notifications and instructions for collecting premium payments.
- 2- Click Approval Process – From the moment an employee has a qualifying event, the solution allows you to get the COBRA process started in just two clicks of a mouse. With an intuitive portal and dashboard, it’s easy to review, approve, or reject any potential COBRA qualifying events.
- Configurable Workflows and Automated Notifications – EverythingBenefits’ automated COBRA administration solution allows you to track all actions for COBRA qualifying events and eligibility. The software proactively monitors deadlines and changes in real-time, and automatically sends notifications to keep you informed of all activities.
- Eliminates Repetitive Tasks – By keeping track of all premium payments, enrollments, terminations, and reinstatements, the solution eliminates repetitive, manual activities and saves you time. As a result, you can be productive in other areas.
- Robust Reporting Capabilities – Powerful reporting tools allow you to track and audit COBRA notices, payments, and communications, so you have full visibility into the compliance of your program. You can also see historical data trends and perform analysis to support your benefits program decision-making.
Forget the countless hours and stress of managing COBRA compliance manually. Stay on top of all the ins and outs of COBRA administration without the headaches and potential for error. Our solution automatically tracks active and prospective participants, manages invoices and remittances, and takes care of COBRA administration for you.
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