Although not an exhaustive list, these are the services provided by BRS COBRA Administration and can serve as a tool to evaluate if your current program meets Department of Labor requirements.

Communication and Monitoring

  • Notice to all employees explaining their rights under COBRA (commonly known as the “General Rights Notice”)
  • Notice to employees/dependents who experience a “qualifying event”
  • Notice to qualified beneficiaries if they are not eligible to continue coverage
  • Notice to COBRA participants if their payment is short by an “insignificant” amount
  • Notice to COBRA participants of their conversion privilege
  • Notice of termination when coverage is cancelled prior to the end of the COBRA term

Daily Responsibilities

  • Monitor COBRA election periods
  • Monitor COBRA participant’s time frames
  • Collect funds for COBRA monthly premiums

Process Documentation & Retention

COBRA administration is more than just taking care of individuals “on COBRA”; it is a total process of notifying, tracking, and documenting all facets of compliance with the complex law.

  • Documentation and proof of mailing of all notifications for 7 years
  • Documentation of all received communications for 7 years
  • If challenged by a regulator or a carrier, we could provide documentation that COBRA has been properly administered

Compliance is not optional, it is mandated by law.

Penalties, fines and repercussions

  • Plans that violate COBRA’s provisions may be subject to a non-deductible excise tax penalty equal to $100 per day, per affected individual, per violation
  • In addition, ERISA provides notice penalties of up to $110 per day from the date of the compliance failure
  • Employers may also be sued by the employee for COBRA noncompliance
  • Employer may be responsible for all medical bills and punitive damages
  • Carriers may refuse to pay claims if they determine an individual is participating via a COBRA plan improperly

Need help with COBRA Administration?

    We welcome the opportunity to partner with companies to provide COBRA Administration solutions. Please contact us at our toll free number (802) 865-4560, or send us an email via the form provided below.