What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.
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Our COBRA Administration
COBRA services can be provided from the initial notice notification process through to the collection of COBRA payments.
Qualifying events for COBRA can be reported electronically via our website, by fax or by mail. This starts the process whereby J.P. Farley Corporation can notify the employee of the election process and rates. Subsequent to election the payment process is tracked and monthly reports are available to the plan. Direct deposit of COBRA premium payments is available, as is weekly updating to the medical Plan Administrator.
COBRA Administration Services includes:
- Process termination form/input data into system
- Produce initial notification and send to eligible participant(s)
- Handle telephone inquires related to COBRA
- Process applications for request to participate
- Calculate rates applicable for the electee(s)
- Send second letter with coupon book to make payments
- Collect monthly premium payments from participant(s)
- Track past due premiums; send termination notices to participant(s)
- Forward premium payments onto employer group
- Update eligibility based on payment of premiums
- Produce monthly reports based on activity
4 Questions to ask about your current COBRA Administration:
- Does your current COBRA Administrator give you the ability to communicate with a live person or is it driven by internet and email? A dedicated JP Farley employee will be assigned to you with a direct dial number and email to ensure your needs are always met.
- Is your current COBRA pricing fixed Per Employee Per Month (PEPM) or do you get billed every time there is a COBRA event? JP Farley will provide one low fixed PEPM price to your plan for COBRA administration.
- Are you satisfied with the time it takes to process your COBRA event letters. As a COBRA administration, we process and mail COBRA event letters daily.
- Are you able to request custom reports and have them delivered when you would like them? JP Farley provides custom reports in a timely manner.
COBRA administration is provided by J.P. Farley Corporation as a regular function of the eligibility services area for clients who utilize our Medical Administration Services as part our basic administration services. COBRA Services may also be administered independent of other services.