Purchasing Power Co.
Purchasing Power Co. Home Cafeteria Plans

COBRA Info

 

COBRA is a law that requires organizations with 20 or more employees to offer the continuation of group health benefits (Medical, Dental, Vision and Medical Reimbursement Account) to employees and covered dependents upon experiencing a "qualifying event." These include:

Termination of employment
Reduction of work hours
Employee's death
Employee's divorce or legal separation
Medicare entitlement
Change in "dependent" status

Keeping up with COBRA notification requirements is a challenge for many organizations.   The Internal Revenue Service estimates that over 90% of all employers are out of compliance with COBRA regulations. This can be costly, because the minimum tax levied by the IRS for non-compliance discovered after a notice of examination is generally $2,500. And with the IRS, the burden of proof lies with you. Plus, unnecessary COBRA claims are often the responsibility of the employer rather than the insurance carrier.

For a quote or more information, contact us at:

(419) 872-0925

COBRAsupport@purchasingpowerco.com

 
 
Purchasing Power will provide initial COBRA notification to covered employees and dependents as well as a letter detailing an individual's rights upon experiencing a "qualifying event," and an explanation of the conversion privilege. We also will:

Notify the appropriate carriers of each person electing continuation of benefits
Bill each COBRA continuee on a monthly basis
Receive the premium payments from COBRA continuees
Forward the premium payments received to the employer to be applied to the monthly group statement from the current carriers
Notify your insurance carriers of termination of COBRA coverage for any of the reasons specified in the Federal COBRA Mandate.

Employee Open Enrollment Procedure

Purchasing Power not only stores information on COBRA Qualified Beneficiaries, but retains import information on your enrolled active employees. With the recent requirement to provide plan specific information in the COBRA General Notice, updated documents were provided.

If your firm is changing or offering a new insurance plan, you will want to enroll your active employees into the correct plan(s) with your insurance broker and forward the information along with the new rates to Purchasing Power.

Log On to COBRA Companion

Latest Cobra News


purchasingpowerco.com