An estimated 80% of companies are not in compliance with
Federal COBRA regulations. Is yours one of them?

COBRA
COBRA allows employees and their dependents to maintain coverage at their own expense by paying the full cost of the premium the employer previously paid, plus up to a 2% administrative charge. A qualifying employer is generally an employer with 20 or more full time equivalent employees. Among the qualifying events listed in the statute are loss of benefits coverage due to:

• the death of the covered employee

• termination or a reduction in hours as a result of resignation, discharge, layoff, strike or lockout, medical leave, or slowdown in business operations

• divorce or legal separation that terminates the ex-spouse's eligibility for benefits

• a dependent child reaching the age at which he or she is no longer covered

Penalties for failing to comply include:

• IRS Penalties: Up to $100 per day per person for each day for failing to furnish HIPAA Certificates and other failure to show Good Faith Compliance with HIPAA’s requirements.

• Department of Health and Human Services Penalties: Penalties of up to $100 per day per violation may be imposed

• Civil Action by the Department of Labor: Civil monetary penalties under the HHS Enforcement rule could be levied

Handling COBRA with Mangrove’s Benefit Administration Services
Whether you decide to administer your COBRA compliance program internally or outsource it, Mangrove offers a flexible solution that will keep you compliant, avoid potential penalties and keep you aware of the ever changing regulations. Minimize risk by leaving the work to our specialized professionals, and take advantage of these features:

• Reduce internal administration

• Guarantee consistent COBRA administration at all work locations

• Experienced dedicated account managers provide personalized, responsive, service

• Avoid costly penalties for compliance failures and lawsuits from former employees

• Report additions, terminations, and COBRA changes to carriers within 48 hours, following up with a phone call to ensure benefits are available.

• Remit collected premiums directly to your carriers, to you, or a combination of both

• Provide your staff and participants with a national toll-free hotline and 24-hour online access for information and support

• Eliminate costly claims from ineligible continuants

• Qualifying Event Notifications
  • Notifications for an employee, spouse, or dependent are sent via Access Mail to ensure proper tracking and documentation.
• Enrollment Confirmation
  • After receiving an eligible election, the initial billing is sent with payment coupons and mailing labels
• Reinstatement Notice to Carrier or Client
  • Upon receipt of the initial payment from a qualified beneficiary, a reinstatement of coverage is filed with the appropriate carrier or directly with the client
• Continuing Coverage Termination Notice
  • A notice is sent when someone loses eligibility for one of the following reasons:
    • Failure to make full initial or regular payment
    • Request to terminate (i.e., other coverage)
    • Attainment of the end of eligibility period (i.e., student status or age)
• Loss of Coverage Notice (to carrier or client)
• Open Enrollment Notice (with supporting materials)
• Coverage Change Notification
• End of Eligibility Conversion Notice
• Medicare Eligibility Notice
• Secondary Qualifying Event Confirmation Notice
• Non-Sufficient Funds Notice
• Initial Notice of COBRA rights (New Hire letter)

Collection Notices and Reports

• Qualified Beneficiaries Premium collection and reporting
• Monthly lump sum transmittal of collected Premiums to the employer or carrier
• Eligibility report and monthly termination report to carriers
• Payment detail\
• Billing history
• Census
• Premium receipts
• Current Status reports

©2009 ExpertCARE Benefits phone: 866.786.0786 | fax: 813.907.0035
David A. Huerta: david.huerta@brandsource.com - Karen S. Solo: karen.solo@brandsource.com