COBRA administration may seem straightforward on the surface, but there are a lot of moving pieces behind the scenes. From tracking payments to managing coverage changes and maintaining records, employers have ongoing responsibilities long after an employee first becomes eligible for COBRA.
When employers handle those responsibilities internally, even small oversights can create big problems.
Payments Require Ongoing Attention
Once COBRA coverage begins, premiums need to be billed, collected, and tracked. Missed payments also require timely follow-up, including grace-period communications that allow participants to address missed payments before coverage is terminated.
Changes Need to Be Communicated
Rates and benefits do not always stay the same throughout a participant’s coverage period. When changes occur, participants need to receive the appropriate communications so they understand how their coverage or costs may be affected.
Good Administration Means Good Recordkeeping
Employers need visibility into who is enrolled, what coverage they have, whether payments have been made, and when coverage may need to end. Detailed reporting and historical records can make that information easier to access when questions or audits arise.
What Medcom Takes Off Your Plate
COBRA may be an employer responsibility, but managing every moving piece doesn’t have to be. By outsourcing COBRA administration to Medcom Benefit Solutions, employers can hand off many of the ongoing administrative tasks, including:
- Premium billing, collection, and payment tracking
- Late payment and rate or benefit change notices
- Participant payment and account management
- Enrollment, termination, and disbursement reporting
- Ongoing tracking through the end of COBRA coverage
Employers still have access to account and payment activity through the DataPath Summit platform, while participants have convenient payment options, including scheduled, recurring, and automatic ACH payments.
With Medcom handling the administration and technology supporting the process, employers can spend less time tracking COBRA and more time focusing on their employees and their business.
