COBRA Administration Solutions

COBRA Administration Solutions
The CONEXIS Solution:
COBRA Compliance
As a human resources professional, you need to make certain
that your company’s employees are fully knowledgeable about
their right to continue health coverage which is provided under,
and strictly regulated, by the Consolidated Omnibus Budget
Reconciliation Act (COBRA).
24/7 access to real-time
However, while the intent of COBRA is admirable, compliance
can be especially challenging. Reporting requirements can be
terribly burdensome and the penalties for non-compliance are
data, activity logs, and
online reports at
www.conexis.org
steep — as high as $500,000 or 10 percent of group health
plan costs. What’s more, unnecessary COBRA claims are costly
and the burden of proof often lies with you rather than the
insurance carrier.
The fact is simply trying to understand this very complex, everchanging COBRA law and ensuring your company’s continued
compliance, can be a full-time job. Unfortunately, like most
managers, dealing with the myriad of requirements for COBRA
is not the only mission-critical task on your plate.
CONEXIS services include reporting, timely
notification, updated employee information
and comprehensive documentation.
Is Your Company At Risk?
Internal administration, with or without costly software, can subject your organization to unnecessary risk. The challenges
of staying current in this evolving area of employee benefits law can overtax even the most resourceful HR staff.
In fact, the IRS estimates that more than 90 percent of all employers are not compliant with COBRA regulations.
The IRS currently performs over a dozen audit procedures for COBRA compliance. Active enforcement is under way as
the government continues to shift healthcare costs out of the federal budget.
Are you COBRA compliant? Use the following as a self-audit:
Does your company have a written COBRA procedures manual?
YES
NO
Can you provide proof of Initial Rights Notices of all your covered
employees and their dependents?
YES
NO
Do you maintain documentation of any past requests for COBRA coverage?
YES
NO
Is your staff trained to answer all attorney questions?
YES
NO
Does your company understand the ramifications of COBRA extensions?
YES
NO
Does your company keep up to date with changes to COBRA law?
YES
NO
If you answered “no” to any one of the above audit questions, you are at risk. No matter what your answers,
CONEXIS COBRA Administrative Services can improve your COBRA program. Our expert staff can cost-effectively manage
every aspect of your COBRA administrative requirements.
www.conexis.org
We’ll Save You Time, Money and Risk
Let’s face it – COBRA coverage is risky. As an employer, you face
significant potential liabilities for non-compliance. But an even
greater risk exists in terms of adverse selection and payment of
unnecessary claims. Consider the following:
• Employers pay an average of $7500 per individual, per year, in
COBRA-related costs.
• Claims costs for COBRA participants are 150 percent greater
than the costs for active employees.
• COBRA non-compliance can be costly. The maximum excise
tax penalty is $500,000 or 10 percent of health plan costs for
the previous year, whichever is less.
CONEXIS is with you
every step of the way –
with a staff of experts
At CONEXIS, we’re able to minimize these risks while delivering
to provide “Service of
significant savings for our clients — savings that you can re-invest in
Unequalled Excellence.”
your business — through:
• Administrative efficiencies such as auto cancellation, payment
screening and election processing systems.
• Conformance to the law while minimizing elections and duration
on COBRA.
• Limiting adverse selection, thereby reducing medical cost ratios.
In fact, we’ve been able to consistently outperform the competition in
key areas such as number of COBRA participants, COBRA election
rates, COBRA duration and call center wait times, which equate to
savings for you. (See the following table.)
CONEXIS
Industry norm*
Number of COBRA Participants
2.3%
2.6%
COBRA Election Rate
14.3%
16.2%
Average COBRA Duration
9.5 months
10.4 months
Average Call Center Wait Time
18 seconds, or employers and
participants can obtain instant
results through IVR or online
30 seconds
*Source: Spencer and Associates
We’re With You Every Step of the Way —
24 Hours a Day, 7 Days a Week
Our benefits experts are trained to quickly and cost-effectively manage every aspect of your COBRA administrative
requirements. Our services include reporting, timely notification, updated employee information and comprehensive
documentation. Plus, you’ll have 24/7 access to real-time data, activity logs, online reports and other meaningful
information that provides you with the tools to ensure your COBRA administration program is running smoothly.
With CONEXIS administering
your COBRA – you can focus
on your core business.
Our Extensive List of COBRA Administrative Services Includes:
• Reliable notifications and tracking
• 24/7 access to information for employers and
participants via www.conexis.org
• Notification in writing to all newly covered employees
and dependents of their COBRA Initial Rights
• Notification to qualified beneficiaries of their rights
under COBRA when a qualifying event occurs
• Notification to beneficiaries of their conversion rights
• Notification to the employer and beneficiaries when a
participant’s eligibility expires under COBRA
• Reinstatement notification to beneficiaries upon
COBRA election and payment
• Billing and collecting beneficiary COBRA premiums
• Notification to beneficiaries of changes in
premium rates
• Assistance with open enrollment changes for all
beneficiaries
• Comprehensive management reports throughout the
month informing the employer of all COBRA activity
• Remittance of collected insurance premiums to the
employer (or insurance carriers as an optional service)
with accounting documentation
• Documentation of all correspondence sent to
beneficiaries
• Implementation of any new requirements for federal
compliance as COBRA law changes
• Personalized answers to any COBRA-related questions
that your employees, or their covered dependents,
may have
• Toll-free customer service telephone numbers for active
COBRA beneficiaries
CONEXIS Web-Based Solutions...
Compliance Is Just a Click Away
COBRA Administrative Services is online at www.conexis.org. When you choose to use our service, you’ll receive a
username and password that will allow you to log on to our Web site and access a host of special features designed to
make complete COBRA compliance even quicker and easier. User-friendly online features include:
For Employers:
For Participants:
• Qualifying Event Submission — Report qualifying
COBRA beneficiaries also have online access available
events in a matter of seconds online, instead of a
matter of days via mail.
for their convenience.
• Online Elections — Qualified beneficiaries can instantly
• COBRA Initial Rights Notices Submission —
elect COBRA via the Web. Our online election process is
Accelerate the process of notifying newly covered
secure, protected by assigning a unique username and
employees and their families.
password, and automated so beneficiaries can immedi-
• Qualified Beneficiary Takeover Submission —
Transfer your existing participants to CONEXIS COBRA
ately use the Web site.
• View Account History — Beneficiaries can access their
Administrative Services as soon as you set up
entire account in real time and view elections, payments
your account.
and plan history.
• Online Reporting — View your entire account history
online, in real time, including participant detail.
• COBRA Administrative Services Tutorial — Learn
“how to” best use our innovative system.
• FAQs — Beneficiaries can access an assortment of common questions related to COBRA and their accounts.
• Payments — Beneficiaries can mail monthly COBRA
payments or have premiums automatically paid through
• Online Administrative Guide — Find the answers to
convenient ACH deductions.
any questions you might have concerning COBRA
Once you and your participants have had a chance to use
Administrative Services processes or procedures.
this extraordinarily efficient new administrative tool, you’ll
• Online Resource Center — Review federal guidelines;
learn about the latest IRS rulings and DOL opinions.
Research current issues and court cases. If you have
a COBRA-related question, the answer is here!
never want to use paper forms again! Best of all, you’ll
have access to CONEXIS COBRA Administrative Services
online 24 hours a day, 7 days a week. So check it out
ASAP. It’s a convenient solution that "clicks" with the way
today’s companies and individual consumers do business.
CONEXIS Web-based Solutions…
Compliance is just a click away.
www.conexis.org
Get a COBRA Administration Solution
That Your Company Can Count On
Expedite COBRA compliance and transfer the entire burden
from your shoulders to ours. To get a quote, or for additional
information:
• Call us toll-free at 877.CONEXIS (877.266.3947) to request a
quote. Or, for your convenience, these forms are also available
online at www.conexis.org.
• Complete the application for administrative services, including
plan information, and fax or email it to CONEXIS.
• A CONEXIS benefit expert will establish your account and
provide you access to worry-free COBRA compliance.
We’re Compliance Experts Dedicated to
Helping You Meet Your Compliance Goals
The customer service and client delivery teams at CONEXIS are among
the most experienced in the nation. Our comprehensive and costefficient methods of handling your COBRA compliance needs are
recognized as among the most innovative in the country. Equally
important, by choosing CONEXIS to fulfill virtually all of your COBRA
administrative responsibilities, you’ll be free to concentrate on other
Reduce
Administration Costs
areas of vital importance to your business.
CONEXIS COBRA Administrative Services is your worry-free solution for
full COBRA compliance. Simply notify us when a COBRA qualifying
event takes place, or when an employee or spouse first becomes
covered under your group health plan.
www.conexis.org
Eliminate
Administrative headaches
Increase Productivity
721 South Parker
Suite 300
Orange, CA 92868
© Copyright 2006 CONEXIS CX4053 7.06
877.CONEXIS (877.266.3947)
www.conexis.org
6191 North State Highway 161
Suite 400
Irving, TX 75038