Do you trust your COBRA administrator? This is an important question because as health insurance rates have skyrocketed, so too has the liability associated with COBRA administration. The ACA removed limits from policies, and in doing so, lifted the lid on potential COBRA errors as well. Remember, COBRA is compliance at its heart and the regulatory penalties which may be levied by the Department of Labor are significant. The insurance claims which COBRA participants might incur can be even more dangerous to the health plan than the penalties.
The COBRA Blog
COBRA CONUNDRUMS reprinted from the August, 2013 issue of Health Insurance Underwriter Magazine featuring our very own Robert Meyers.
COBRA CONUNDRUMS reprinted from the October, 2012 issue of Health Insurance Underwriter Magazine featuring our very own Robert Meyers.
COBRA CONUNDRUMS reprinted from the February, 2012 issue of Health Insurance Underwriter Magazine featuring our very own Robert Meyers.
With our economy ever in flux, it’s not unusual for a small business to be juggling several COBRA participants at any given time. As your HR department has probably surmised by now, communicating with former employees and retirees is not the easiest task - and getting them to make their COBRA payments in a timely manner can be especially time consuming.
No business hangs out the “Yes, We’re Open for Business” sign thinking that one day it would eventually be closing the doors for good. But in a slow-to-recover economy, small businesses are faced with difficult challenges, and the decision to close the doors is sometimes one of them.
Every year during open enrollment a few unsuspecting companies make a big HR mistake: They unwittingly allow their COBRA administration program to change along with their benefits plans. Sometimes it’s because the carrier recommends a different COBRA administrator. Sometimes it’s because a broker is offering free COBRA software. And sometimes, the broker and the HR team aren’t even conscious that the change is occurring because the COBRA administration was a free service provided by the old health insurance carrier.