Any business can be challenged by federal regulations requiring health coverage to be offered to former employees. That’s why Preferred Health Plan of the Carolinas provides a system designed to handle all COBRA requirements and regulations.
COBRA Administration includes:
- Timely notification of COBRA rights
- Expedient processing of COBRA acceptances
- Distribution of COBRA termination notices
- Premium payment tracking
Gaining COBRA Access
Once all the personal information is entered into our system, a letter is generated offering the former employee and each family member healthcare coverage under COBRA. A toll-free telephone number is included for our COBRA department, which can be contacted for coverage and payment information. When the offer is accepted, we mail out monthly premium coupon book to be used for remitting payment. Billing coupons are issued for an entire plan year or until COBRA coverage ends.
Payment of COBRA Premiums
COBRA Premiums are due the first of each month, with a 30-day grace period. If a premium is not received by the due date or during the following 30-day grace period, a termination letter will be sent.
Termination of COBRA Coverage
Failure to make a full monthly payment is not the only way a continuant’s coverage can be terminated. COBRA coverage will be terminated when the 18, 29 or 36 month time period expires, the individual obtains coverage under another group health plan that does not exclude or limit conditions meeting criteria for pre-existing conditions. COBRA will be terminated if the individual fails to remit premium prior to the end of the grace period. In addition, COBRA coverage ends if the employer stops providing health coverage to its current employees.
Tracking and Reporting
To provide a complete audit trail for compliance purposes, our system maintains a “letter history” log containing the past employee’s information. Our system tracks acceptance notification for 60 days, receipt of the initial COBRA payment for 45 days and receipt of subsequent payments for 30 days. Medical claims are held for payment during each of the grace periods for built-in protection against overpayments. Employers are able to fully track COBRA activity through a comprehensive monthly reporting package.
For more information on COBRA Administration from Preferred Health Plan of the Carolinas, please contact us at 866.636.0239.