COBRA Administration

Consolidated Omnibus Budget Reconciliation Act (COBRA) compliance is complex and mandatory. COBRA is often viewed as an “employee benefit,” but the reality is – it is a law. Fines can amount to hundreds, even thousands of dollars for every day that your organization does not comply. Our experienced team can help you mitigate that risk. We can free you from the burden of COBRA administration.

Our service includes:

  • Distributing notifications and correspondence, election packets, and termination notices as required by law;
  • Courtesy notices such as late payment notices and deficient payment notices;
  • Maintaining qualifying events and HIPAA loss-of-coverage data;
  • Processing election forms, and tracking key dates to ensure accurate and timely responses to administrative requirements;
  • Provide HIPAA Certificates of Creditable Coverage (optional);
  • Provide other notifications (optional, additional charge) such as Medicare Part D Creditable Coverage Notices, Women’s Health & Cancer Rights Act, Michelle’s Law, and Mental Health Parity.
  • Payment collection and remittance

Contact us at to discuss your needs.

  • IRS can fine $100 per day, per violation for non-compliance with COBRA.
  • IRS can fine $200 per day, per violation if more than one beneficiary in a family.
  • ERISA Penalties $100 per qualified beneficiary.
  • Medical claims penalties
  • Damages
  • Attorneys Fees

Example of an “Initial Notification” violation:

Assume an employer, in the first year of business, has never sent the required Initial Notification 
Notice to any of the company’s 25 employees. 
25 employees (assume all single) X $100 X 365 days or one year of non-notification = $912,500.00

Please note, effective January 1, 2016  a flat fee of $14.95 will be applied to all one-time payments (ACH and Credit Card).  This convenience fee will take the place of all other payment processing fees. Recurring ACH payment will continue to be free of the processing fees.
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