COBRA Plan Management – A Complex Process Governed by Changing Rules & Regulations

COBRA Plan Management – A Complex Process Governed by Changing Rules & Regulations

When it is about your health, COBRA plan management is used by many organizations to organize and track the chronology of the occurrences and save reports through an integrated and automated system. COBRA Plan Administrator is an efficient and effective tool for handling the company’s documents and events in a simple and easy manner and maintaining the compliance of the company with Federal Laws for COBRA at the same time.

The major function of this integrated management program is to store data in a single location and drawing all the notifications of COBRA from that data. A default word processor provides ability to produce customized documents to provide information about the rightly qualified beneficiary under the law. As soon as COBRA is expected, the function of billing produces invoices and tracks the premium payments of COBRA.

What is COBRA Plan?

COBRA is the abbreviation for Consolidated Omnibus Budget Reconciliation Act, for 1985 that was made effective in July 1986 and is still in effect. COBRA is actually a law that makes it compulsory for all the employers to facilitate their employees to continue their group coverage which should fall in the qualified beneficiaries’ category. Most if not all companies that possess an employee strength of twenty plus employees must comply with this federal law.

Organizations that must have COBRA Administration

Each and every firm that has a group health plan scheme must provide COBRA continuation plan. On the other hand, there are few exceptions to this rule. Primarily there are the companies that possess less than twenty employees and secondarily list of those church groups and federal Government that do not fall in the category.

Event that Qualifies the Individual

The individuals in an organization which experiences a ‘qualifying event’ called Qualified Beneficiaries or QBs. There are six qualifying events in an organization and these are as follows;

The employee or any other individual in the company that experiences a qualify event is also called QB or qualified beneficiary. There are around 6 of these qualifying events in every organization and they are given below;

  1. Work hour reduction
  2. Employment termination
  3. Legal separation or divorce
  4. Medicare entitlement
  5. Health of employee
  6. Loss of dependency status

Omnibus Budget Reconciliation Act or (COBRA) mandates group health plans for employers with 20 plus employees to provide employees and their kin who lost their health settlements the right for choosing to continue their group health benefits and for that the company has to choose right COBRA plan management.


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