Product Spotlight
The Infinisource Advantage: Managing COBRA Time Frames

Isn’t it funny how time slips away? Deadlines are at every turn, from the workplace to home life, but are often unmet. Allowing COBRA time frames to slip away can be a recipe for disaster with expensive ramifications. COBRA administrators like Infinisource can ease your worries by tracking and enforcing the time frames and reducing your plan’s claim costs.

The 2006 Spencer Benefits COBRA survey once again showed that COBRA continuees cost a plan much more than active employees, this year by about 45 percent. More than one in ten employees became eligible for COBRA coverage last year. The Spencer survey also found that 26.6 percent of those offered COBRA actually elect coverage, much higher than in previous years. Thus, more than ever, it’s important to be aggressive, yet compliant, with removals, reinstatements and payments for COBRA coverage.

Imagine forgetting to remove someone from the plan who didn’t pay the COBRA premium on a timely basis. That one individual can increase your costs. COBRA costs averaged $9,914 per year, 19% higher than two years ago, according to Spencer. COBRA continuees cost you more and have higher claim activity than active employees. The solution is having an aggressive time management of COBRA in place.

Infinisource takes worries away by tracking the proper COBRA time frames. Here are just a few of the time frames we monitor:

• General Notice mailing (typically, within 90 days of first being covered).
• Reasonable notice procedures for Qualified Beneficiaries (within 60 days of the event).
• Qualifying Event Election Notice mailing (within 14 days from receipt of information from the employer or plan administrator).
• Election Notice Receipt (within 60 days from the date of the notice or loss of coverage date, whichever is later).
• Initial payment (within 45 days from the date of the election).
• Monthly payment (within 30 days from the due date).
• Insignificant underpayment (30 extra days from the date of the notice).
• Unavailability Notice (within 14 days of request for COBRA coverage).
• Early Termination Notice (as soon as practicable).
• Conversion notices (within 180 days prior to the COBRA expiration date).
• COBRA coverage extensions.

This is a long checklist for anyone to manage alone. With Infinisource on your side the fear of missing a time frame can be eased. To learn more about COBRA Administration or to see how this service can help you and your clients, contact us at: solutions@infinisource.net or call our Sales Department at 800-779-6384.

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