COBRA Features

Features Summary

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The following summarizes the process and services BAS provides for COBRA Administration

General Notices (Required by regulation)

  • Define & document letter generation rules
  • Prepare automation rules and letter printing
  • Same day USPS first class mailing

Qualifying Event Notices (QEN’s) (Required by regulation)

  • Automated QEN printing from client’s online data entry
  • HIPAA Certificates provided automatically with QEN’s and upon request
  • BAS back office mailing via USPS Proof of Mailing of QEN’s
  • Automated tracking of 60-day election period
  • Automated letter notification to Qualified Beneficiary when no election made by end of 60-days
  • BAS back office support services for collecting and processing elections
  • Automated generation & mailing of premium billing coupons upon election form receipt
  • Automated tracking of 45-day first payment period
  • Automated termination of COBRA coverage when payment not made or insufficient within required 45-days or subsequent 30-day grace periods

Premium Collection Services

  • BAS lock box collection service
  • Payment check, invoice, & envelope imaging
  • Monthly premium remittance to client with detailed accounting

Reporting Services
All COBRA correspondence emailed to client as PDF backup
Biweekly COBRA activity log
Monthly COBRA Continuants Coverage summary
Monthly premium collection & remittance report

Key Features
Bar Coded documents for printing & mailing confirmation reconciliation
All documents instantly imaged for document archival and 24/7 online access
QEN’s sent via USPS Proof-of-Mailing
All database records date/time & user id stamped for audit purposes
All document images retained online for 7 years and off line indefinitely
Clientís HR/Benefits administrators have 24/7 access to all cobra accounts

General Notices – BAS prepares and sends all eligible employees a General Notice of COBRA Rights & Obligations, based on selected services.

Qualifying Event Notices – BAS sends COBRA Qualifying Event Notices via USPS Proof-of-Mailing, which entails the USPS certifying that each Qualifying Event Notice is mailed. Through this process each Qualifying Event Notice addressee is listed in a USPS approved log book that is presented with the Qualifying Event Notices being mailed. The USPS reviews the log items vis-a-vis the presented Qualifying Event Notices and certifies the entries. This process is very important because (1) it is considered within the COBRA administration industry as a “best-practice” (2) it substantiates the mailing of each Qualifying Event Notice which would otherwise be absent if QEN’s were merely mailed via USPS First Class service, and (3) in the event a COBRA Qualified Beneficiary claims they never received the QEN, the log book can be an important element in verifying the mailing.

BAS Processing Support – BAS offers clients two ways to initiate Qualifying Event Notices. For accounts that can provide payroll data feeds, BAS will use those feeds to compare the data to the clientís data already on Or, clients can manually initiated QENís by accessing directly.

COBRA Continuants Support – BAS provides all COBRA qualified beneficiaries and continuants a toll-free customer service center to assist with coverage election and payment inquiries.

Adjudicating Eligibility – BAS assists client in adjudicating eligibility uniformly & fairly. accurately & automatically calculates the appropriate COBRA duration periods based on the Qualifying Event, Loss of Coverage, and Severance (if any) dates.

Premium Collection — All COBRA continuants are provided billing coupon sets immediately upon making their election for continuation benefits. BAS collects monthly premiums from COBRA continuants utilizing bank lock box services to assure timely and accurate premium collections. Continuants are provided billing coupons.

At the end of each month, BAS sends the client the collected premiums and associated accounting reports. All premiums remitted are net of the 2% administration fees assessed COBRA participants by BAS. also provides historical data about employees and dependents processed through BAS’ COBRA services. Information includes:

  • Participants’ Profiles (i.e. addresses, phone nos., etc)
  • Premium Billings
  • Payment Receipts
  • Electronic Document Copies of All Notices Sent
  • COBRA Dates (qualifying event, start, end, etc.)

Premium Billings to Continuants — BAS provides continuants with monthly billing coupons, updated billing coupons in the event of rate changes, and late pay notices in conjunction with grace period regulations. Coupons are printed on sheets of paper with designated perforation lines, and are provided upon BAS’ receipt of the continuant’s notice to elect COBRA coverage.

BAS does not send billing coupons with the initial notice since continuants may not elect the full coverage available, which is often the case. Experience indicates that providing billing coupons after a continuant notifies BAS of their election to continue coverage assures continuants have a clearer understanding of their payment responsibilities and eliminates their remitting incorrect premium payments, especially with regard to their initial payments.

Monthly Reporting - BAS will provide the client with monthly reporting statements about the past month’s administration results such as listings of letters sent, payments received, late pay letters sent, and much more.

Data & Correspondence Histories – BAS retains history files of all written correspondence including continuantsí envelopes used to mail in payments. Copies of all correspondence that the BAS COBRA system sends out are stored in electronic format. This means that clients have access to these electronic document copies through

HIPAA Certificates – BAS sends HIPAA certificates with Qualifying Event Notices and upon request by an individual or health care provider. The Health Insurance Portability Access Act requires that employers provide employees that lose coverage with certificates of credible coverage known as HIPAA Certificates.

Additional Notifications – BAS sends notices to continuants, as required by regulations, for post-Qualifying Event Notices, such as 180-day notice prior to the end of continuants’ COBRA duration period, end of duration period of continuants’ COBRA period, and other types of notices as required.

Open Enrollment – BAS will prepare continuants’ open enrollment applications, and send them to the continuants or the client, based on services selected. Upon BASí receipt of the continuants’ open enrollment applications, BAS will update the continuants’ records, and will send continuants updated payment coupons.