Should I Get A Notice Prior To Rate Increase For COBRA?
Is my past employer required to give me notice prior to a rate increase and insurance carrier change? And if so how much notice?
If the group changes health plans or health plan company while you are on continuation coverage, your coverage will also change to the new plan. If this does happen, your previous employer does have to notify you, but they are only required to notify you prior to the effective date of the premium change, meaning they could do it as late as the day before the rate change. They are limited to changing the premium price only once in a 12-month period.
Why Does COBRA Cost So Much?
Employees who find themselves continuing their employer-sponsored health insurance plan are sometimes surprised by the cost of COBRA insurance. This is because you are paying for all of it. This includes the employer’s portion they had paid previously, plus a 2% administration fee often times.
COBRA Third-Party Administrators
Your COBRA plan may be managed by a third-party administrator. Many employers work with the following:
- ADP COBRA
- BASIC COBRA
- BAS' COBRA Control Services
- BenefitConnect EHR
- Businessolver / BenefitSolver
- BRI COBRA (Benefits Resource)
- bswift COBRA
- COBRAPoint Benaissance
- Employee Benefits Corp (EBC)
- HRPro
- Inspira Financial (formerly Payflex)
- iSolved Benefit Services
- Lifetime Benefit Solutions
- Navia Benefit Solutions
- Optum Financial
- Paychex
- Paycom COBRA
- PlanSource
- ThrivePass
- Total Administrative Service Corporation (TASC)
- WageWorks / Conexis
- WEX (formerly Discovery Benefits)
If you are unsure who your plan administrator is, reach out to the human resources department of the company that provided the health insurance you had.
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