COBRA, or the Consolidated Omnibus Budget Reconciliation Act of 1985, enables employees and dependents who no longer qualify under an employer provided group benefit plan to continue insurance under the group benefit plan.
Who is subject to COBRA? Generally speaking, if you offer a group health plan and had 20 or more employees on at least half of the business days in the prior calendar year, you must comply with COBRA. COBRA applies to group medical, dental and vision plans as well as retiree health plans, medical flexible spending accounts, medical reimbursement plans, health reimbursement arrangements, and some employee assistance plans.
Employer Responsibilities
Qualified beneficiaries must be offered the opportunity to continue the same type of coverage as they had with their group plan when certain "qualifying events" occur. COBRA notices must be provided to each beneficiary when coverage is first obtained, when a qualifying event occurs and benefit coverage is lost.
What is in it for Employers and Employees?
You have better things to do each day rather than hassle with all of the documents and administration of COBRA in your company. Save time and money when you let AAOA and United Benefit Services administrate COBRA with your current AAOA United Healthcare benefit plan.
COBRA administration can be ongoing and complex, but all you need to do is enroll your company in our COBRA program, notify us when a qualifying event occurs and we handle all of the administrative work to ensure that your plan complies with COBRA require¬ments, all at no additional cost to you.
AAOA COBRA Services
When you have a UnitedHealthcare medical plan through AAOA you get streamlined COBRA administration at no cost for all your AAOA eligible plans. We will service all your COBRA needs with assured compliance and efficient record-keeping. When a qualifying event occurs, you simply notify AAOA through AAOA e-Services and we do the rest. Our COBRA administration and processing includes:
Employee Support: Mailing of qualifying event notices with proof of mailing, written communication and reminders regarding account status (eligibility for COBRA disability extensions), monthly premium collection including notices of partial or late payments.
Employer Support: Examination/reconciliation of current participants' account status for takeover; payment coupons provided to new participants and upon renewals; immediate notification of new elections or terminations;prompt delivery of a monthly consolidated check for received premiums; technical assistance on questions about administration or compliance; reports such as payment status of enrolled participants; and listing of distributed notifications and summary listings of coverage terminations.
Complete COBRA administration with separated billing by employee to providing employers the information needed to apply for 941 payroll tax credits timely.
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