COBRA and state continuation laws remain in place as a requirement for any employer offering group benefits. These laws create a risk to employers who are out of compliance, so special care and attention must be used to maintain healthy administrative practices. For example, one common reason employers outsource COBRA administration is due to financial loss as a result of COBRA billing errors with their carrier. Did you know most employers aren’t aware of the need to reconcile their insurance premium on a monthly basis? Thousands of dollars in business revenue are left on the table each month.
Here are 6 main reasons why outsourcing to a modern COBRA administrator is a no-brainer:
Complete Federal COBRA administration with the most up-to-date and compliant notices.
Complete State continuation administration is included in the service. *If applicable
All group benefits are included.
State-of-the-art online COBRA system.
It creates a healthy boundary between an employer and a former employee. (no more collecting premiums from former employees).
All employee terminations are entered online, one-time, and Flyte does the rest!
COBRA compliance is complex, and employers can take advantage of a full-service, affordable, compliance solution at any time. Outsourcing COBRA administration is a way of lowering risk and reducing administrative burden on HR.
While outsourcing COBRA administration is not required, it is highly recommended due to it’s low cost, ease of use and risk assurance.
Considerations for choosing a COBRA administrator
Here’s one approach to evaluating a potential vendor COBRA for their services:
Evaluate their process: COBRA service should be efficient and streamlined, which reduces errors and saves time for employers.
Check their online capabilities: A modern service provider utilizes state-of-the-art technology to ensure accurate and secure handling of sensitive employee information.
Ask for references if you need: Many employers who have hired a COBRA administrator report increased efficiency and peace of mind, making them a great reference for potential clients.
Compliance minded: Your COBRA provider should be fully compliant with all regulations as well as utilize financial best practices at each step.
Sufficient transition support: A good COBRA provider offers a smooth transition process to their service, allowing employers to focus on monitoring the contract and other strategic tasks.
COBRA outsourcing is a reliable and efficient solution for employers seeking to ensure this requirement is fully met.
Have COBRA Questions?
Contact Flyte today and one of our seasoned staff will gladly assist you.