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COBRA


COBRA Plan Administration and Support for SMBs

What is COBRA?

Your business is obligated to comply with the Consolidated Omnibus Budget Reconciliation Act (COBRA), a complicated federal health care law.

If you employ 20 or more employees and offer group health benefits and a qualified employee leaves your company, works fewer hours, or experiences a qualifying event, COBRA requires you to provide former employees and dependents with the opportunity to continue health benefits coverage for a designated time.

The Pain and Frustration of COBRA

Small to mid-sized businesses waste precious resources like time and money, increase their overhead, and put themselves at financial risk by improperly administering a COBRA plan to their employees. Understanding COBRA’s perplexing rules and calculations is painful for business owners and changes are frustrating to keep up with.

Example: Confusing COBRA Calculation

“COBRA generally applies to all private-sector group health plans maintained by employers that have at least 20 employees on more than 50 percent of its typical business days in the previous calendar year. Both full- and part-time employees are counted to determine whether a plan is subject to COBRA. Each part-time employee counts as a fraction of a full-time employee, with the fraction equal to the number of hours that the part-time employee worked divided by the hours an employee must work to be considered full time.”1

Example: Painful COBRA Notification & Tracking

COBRA may require you to provide up to 25 written notices per affected employee.

COBRA Mistakes are Expensive

Employers are responsible for COBRA benefits administration mistakes. These mistakes have huge consequences, including:

  • IRS fines
  • Department of Labor audits and enforcement activities
  • Employee lawsuits
Example: The Cost of Mistakes

Take, for example, the IRS Excise Tax & ERISA Civil Penalties for a family of 4 people during 90 days of COBRA non-compliance.

$57,600 in IRS & ERISA penalties for a family of 4 for 90 days of non-compliance.

Employee Spouse Child 1 Child 2
$210 $210 $110 $100

= $640 x 90 Days of Non-Compliance
= $57,600

Non-compliance penalties applied in this example:

  • IRS Excise Tax:
    $100 per day / per qualified participant ($200 per day maximum)
  • ERISA Civil Penalties:
    $110 per day / per qualified participant (no maximum)

The Solution: COBRACompli™ Services Suite

COBRACompli is a COBRA compliance and administration service offered by MyHRConcierge for Small and Medium-Sized Businesses with 20 or more employees.

Protect your business from financial risk with COBRACompli’s Administration and Support services.

COBRACompli Administration

With COBRACompli, we handle the administration details of the COBRA plan for your business. MyHRConcierge will:

  • Send required correspondence to qualified employees
  • Track dates
  • Collect premium payments from participants
  • Remit premium payments to you
  • Communicate enrollments to the carrier
  • Monitor eligibility and remove terminated employees from coverage

COBRACompli Support

Trust the COBRACompli team of experts to help you navigate intricate COBRA rules and regulations. We provide:

  • Easy-to-understand, precise guidance tailored to your business objectives, workforce, and situation
  • Help when you need it
  • Convenient, secure online access for you and your participants
  • Monitoring of changes in COBRA regulations
  • Rapid system and process updates to address COBRA legislative changes
  • Reports on all COBRA activity

The COBRACompli Difference

Count on us to help start and run a new COBRA administration program – or manage an existing program. You can rely on COBRACompli to handle the complex details that often drain your time. It frees you to handle what really matters to your business.

Sold & Secure Infrastructure

The COBRACompli platform and processes are built to manage the complexities of compliance within a secure environment. This includes a leading, enterprise-class, central system of record for COBRA administration.

Always Available

COBRACompli delivers a full-featured online experience for you and the participants. You get secure, real-time access to information through an online portal.

For more information about COBRACompli or our other human resources services and support, contact us for a free initial consultation.

Schedule a Free Consultation

Download MyHRConcierge’s COBRACompli Brochure

1. [An Employer’s Guide to Group Health Continuation Coverage Under COBRA. US Department of Labor]

The HR and business professionals at MyHRConcierge are here to respond to your questions and concerns, and keep small to medium-sized businesses compliant with federal and state labor laws. Delivering personal service to our Partners and Clients is the heart and soul of our business.