COBRA/HIPAA Case Study #1
ABC COMPANY, a textile manufacturing company with 120 employees, processed COBRA in-house. With the economic downturn, ABC was experiencing a shift in its workforce. ABC had one employee, Ms. Jones, dedicated to human resources administration. Ms. Jones was overworked and not properly trained in the technical notification and processing requirements of COBRA. With more and more employees being terminated from the company, Ms. Jones found she could not keep up with distributing COBRA notices. She also doubted her understanding of the different notices legally required under COBRA and when those notices had to be provided.
ABC COMPANY signed up for BAS’s COBRA administration through Cobra Control Services, LLC (CCS). When ABC Company terminated an employee, Ms. Jones logged onto MyEnroll and entered basic demographic information for the terminated employee. CCS sent a COBRA qualifying event letter to the terminated employee and his enrolled family members, explaining the right to continue health coverage and providing information about paying for that coverage. CCS provided monthly payment coupons. CCS kept track of the legally required timing of the election period and monitored when the employee made a COBRA election and when he paid for coverage. If an employee stopped paying for coverage or made an insufficient payment amount, CCS communicated with the individual. At the expiration of COBRA coverage, CCS provided information about termination of coverage and conversion rights. The Benefits By working with Cobra Control Services, LLC, Ms. Jones was able to reallocate her time to payroll functions and human resources issues. ABC Company was confident that they were complying with the requirements of the Internal Revenue Code and Department of Labor for COBRA communications, relieving itself of potential fines and penalties.
By working with Cobra Control Services, LLC, Ms. Jones was able to reallocate her time to payroll functions and human resources issues. ABC Company was confident that they were complying with the requirements of the Internal Revenue Code and Department of Labor for COBRA communications, relieving itself of potential fines and penalties.
COBRA/HIPAA Case Study #2
XYZ SCHOOL, a school district with 1,200 employees, used a third party administrator for processing COBRA. The School District employed teachers, administrators and staff. Some teachers were unionized, as were some staff. Different unions provided different benefits, but all were administered through the District. The third party COBRA administrator repeatedly provided inaccurate information about COBRA benefits to the different classes of employees and could not process health coverage with varying payment tiers and renewal dates. COBRA continuants were periodically dropped from coverage without reason and were becoming increasingly frustrated. Calls to the District increased as the administrator did not have a properly staffed call center.
XYZ DISTRICT signed up for BAS’s COBRA administration through Cobra Control Services, LLC. During initial implementation, CCS worked closely with the District to identify all of the classes of employees and all of the available coverage options. CCS was accounted for all employee classes and properly bundled coverage options for each class. Once in the MyEnroll system, the District could select the appropriate benefit when a COBRA event occurred. CCS mailed monthly payment coupons, verified receipt of COBRA premium amounts and determined any balance discrepancies. CCS communicated rate changes appropriately to COBRA continuants. CCS provided the District with a detailed remittance report, allowing the District to collect the full amount of the COBRA premiums and remit the correct amounts to the appropriate carriers. Since all information was captured in MyEnroll.com, continuants could call BAS with questions and receive detailed, personalized responses.
By working with Cobra Control Services, LLC, the District was able to easily forward COBRA collections to the carriers, avoiding inadvertent COBRA terminations. COBRA continuants stopped calling the District to discuss COBRA issues and instead contacted the CCS call center through which client service representatives could provide accurate, detailed answers to continuants’ questions. With personalized attention, COBRA administration ran more smoothly for all involved.