Benefit Allocation Systems, LLC (“BAS”) has been providing COBRA administrative services for many years. In 2004, BAS established Cobra Control Services, LLC (“CCS”) as a BAS wholly owned subsidiary to brand its standalone continuation of coverage and COBRA services.
BAS ensures quality standards are met within the organization. In so doing, BAS takes the following actions:
- HIPAA Privacy & Security Practices followed
- SOC 1, Type 2 Internal Controls Annual Audit
- SOC 2, Type 2 IT Annual Audit
- Security Team Oversight of Company Practices
- Regular Management Team Meetings and Oversight
- In-house Legal Counsel Oversight of all Operations
Specific to COBRA services, CCS has implemented the following processes.
The team of accounting professionals at CCS engages best practice accounting principles to process all COBRA payments, receipts, reimbursements, fee retention, and other records of customer-related accounting transactions. Cash receipts are entered into the BAS system and the cash recorded by the financial institution is reconciled daily with any discrepancies identified and monitored until resolved.
COBRA Qualifying Event Letters:
Each business day, MyEnroll360 automatically prints COBRA qualifying event letters for all continuants entered into MyEnroll360 the prior business day. CCS receives an email notification identifying the number of letters scheduled to print. CCS generates a report of the number of letters scheduled to print. CCS counts the number of letters that did print as well as scans the barcode on each letter into MyEnroll360. MyEnroll360 will not allow the printing of the post office manifest unless the number of letters match. Any discrepancies are identified and resolved. The post office, using the manifest provided by CCS, checks that each COBRA notice listed is included in that day’s mailing. CCS retains a copy of the post office manifest showing all letters mailed with post office initials and official seal.
COBRA Initial Rights Letters:
Each day, MyEnroll360 automatically prints COBRA initial rights letters for all employees entered into MyEnroll360 the prior day. CCS generates a report indicating the number of letters scheduled to print. CCS counts the number of letters and resolves any discrepancies.
The qualifying event letters include a barcode. Letters are folded & loaded into envelopes via an inserter machine which scans the barcode to ensure letters are not double stuffed.
BAS employs in-house legal counsel to ensure that COBRA letters are current with language required by the U.S. Department of Labor.