COBRA Administration
COBRA (Consolidated Omnibus Budget Reconciliation Act) gives particular former employees, retirees, spouses, former spouses, and dependent children the right to a temporary continuation of their health coverage at group rates (plus a 2% administration fee). COBRA coverage, though, is only available when coverage is lost due to specific events.
Group health coverage for COBRA participants is generally more expensive than health coverage for active employees, as the employer usually pays some of the premium for active employees. COBRA participants generally pay the entire premium themselves. Still, COBRA is in most cases less expensive than individual health coverage.
COBRA administration can be extraordinarily time-consuming, difficult and confusing - outsourcing these tasks to professionals dramatically reduces your company's margin for error. Clark & Lavey can network your organization with the experts in COBRA administration who provide such services as issuing all notices and HIPAA (Health Insurance Portability and Accountability Act) certificates - collecting premiums and handling terminations.
Overview
