Clarity Benefit Solutions Discusses Three Cobra Administration Trends
NEW YORK, Oct. 30, 2017 /PRNewswire-iReach/ -- Clarity Benefit Solutions discusses three COBRA administration trends.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) was designed to help employees continue with their health insurance if they become ineligible to receive the benefits of health insurance. When someone is ineligible to receive benefits (most likely due to a qualifying event like layoff or voluntary departure), an employer stops paying the employee's premiums. With COBRA, if the ex-employee wants to keep his or her same coverage, and is willing to pay for it, health coverage will continue at a group rate to that employee and family. Here are three COBRA administration trends to be aware of.
- Online portals. More and more employers are using a single online portal for COBRA administration. This not only automates the entire process, but allows employers easy access to health information, recent transactions, and all other financials. This portal should be easily accessible and simple to navigate—offering the ability to communicate between employer, ex-employee, and carriers.
- Automated compliance. COBRA requirements are more complex than employers may realize. Violations will result in costly penalties and liabilities. In addition, Employee Retirement Income Security Act of 1974 (ERISA) regulations allow for personal liability to be imposed on the employer for COBRA violations. A web-based software solution will streamline compliance with automated notifications, employee billing, and 24/7 access.
- Outsourcing COBRA administration. Although online portals have streamlined the entire process, making it much easier to navigate, some employers may opt to use a solution provider's services rather than tackle this task unassisted. A solution provider can serve as a professional buffer between employer and ex-employee. Here are some services a solution provider can offer: ongoing COBRA administration, sending qualifying event notifications via first-class mail (with proof of mailing), processing and validating COBRA elections, billing and collecting premiums monthly, following bad address processes for undeliverable mail, providing collections for back checks, sending termination and conversion letters, processing participant life status events, managing ongoing validation of COBRA participant eligibility, and validation and processing disability extensions.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
Media Contact: Calvin Clark, Clarity Benefit Solutions, 732-428-8272, [email protected]
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SOURCE Clarity Benefit Solutions
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