What is my role as the COBRA Administrator?
A COBRA Administrator is typically someone who works in the Human Resources department. The COBRA administrator manages notifications to enroll former workers and their families in a continuation of their work health insurance plan once it stops. They will also be responsible for receiving premium payments and cancellations.
This individual is to properly record, track and administer the many steps needed for a business to comply with the law.
The process can be complex. If timelines are missed, the company providing the insurance may be fined by the IRS up to $200/day for non-compliance.
Third-Party COBRA Administrators
Some companies may find it too time consuming or confusing to manage former employee COBRA plans and enrollments. The COBRA law allows for third-party administrators, also known as a TPA, to charge an extra 2% to the premiums for their services. These companies take the burden off Human Resources departments of having to track down insurance payments.
Common third-party COBRA Administrators
Do You Need A TPA To Help Administer COBRA?
Connect with sales representatives that can help you find TPAs that manage employer COBRA programs.