Clarity Benefit Solutions Discusses the Importance of COBRA Compliance for COBRA Administration Companies
NEW YORK, Feb. 16, 2018 /PRNewswire-iReach/ -- Clarity Benefit Solutions discusses the importance of COBRA compliance for COBRA administration companies.
Complying with COBRA mandates is serious business, especially for COBRA administration companies. After all, businesses rely on COBRA administrators to effectively keep abreast of constantly evolving rules and regulations to effectively navigate the intricacies of these laws. If a business violates COBRA requirements, it can be subject to costly penalties and liabilities. Additionally, COBRA administration companies must have a thorough understanding of Employee Retirement Income Security Act (ERISA) regulations that allow for personal liability to be imposed on the employer for any COBRA violations. COBRA applies to plans maintained by private-sector employers and these plans are sponsored by most state and local governments. Here are some tips for staying on top of these constantly evolving rules and regulations.
There are three elements to qualifying for COBRA benefits that COBRA administration companies should know: specific criteria for plans, qualified beneficiaries, and qualifying events. Group health plans for companies with 20 or more employees on more than 50 percent of its typical business days in the previous calendar year must offer COBRA benefits. A qualified beneficiary is typically an individual covered by a group health plan on the day before a qualifying event, who is either an employee, employee's spouse, or employee's dependent child. And, qualifying events are certain events that cause an individual to lose health coverage.
COBRA administration companies that want to ensure their clients are complying with COBRA regulations should use an online platform. This software will streamline compliance with automated notifications about important life event changes, qualifying events, pending payments, and account updates.
Compliance with COBRA regulations can also be mastered by performing the following tasks: sending send qualifying event notifications via first-class mail with proof-of-mailing, validating all COBRA elections processing COBRA elections once completed by client/qualified beneficiary, billing and collecting premiums monthly, following bad address process for undeliverable mail, providing collections for bad checks, sending termination fees and conversion letters, processing participant life status events, managing ongoing validation of COBRA participant eligibility, and validating and processing disability extensions.
About Clarity Benefit Solutions: Clarity Benefit Solutions COBRA administration 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, 7324288282, cclark@claritybenefitsolutions.com
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SOURCE Clarity Benefit Solutions
