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Bene-Care COBRA Administration / COBRA Solutions

Bene-Care is ready to assist you with understanding and implementing the new regulations.

Bene-Care works with you to stay abreast of ongoing changes to COBRA, ensuring that you are in compliance with Federal regulations. Bene-Care reduces the administrative burden placed upon employers by incorporating state-of-the-art system capabilities - along with 30 years of administrative expertise - to efficiently manage and simplify the COBRA administration process. Once you notify us of an individual’s COBRA eligibility, we:

  • Coordinate the mailing of all communications and notifications, including the initial notification issued to COBRA eligibles
  • Handle all premium invoicing and collection
  • Coordinate open enrollment planning and fulfillment for participants
  • Provide expert, individualized customer service to each participant
  • Update you and eligible employees whenever plan changes occur
Click here for an overview of COBRA as part of the American Recovery and Reinvestment Act

Recent Changes To Cobra

2010

August, 2010: The outlook for another COBRA subsidy renewal is up in the air. The Unemployment Compensation Extension Act of 2010 signed by President Obama on July 22, 2010, did not extend the COBRA premium reduction and support is lacking in Congress because of the cost to fund the premium assistance. Sen. Sherrod Brown (D-Ohio) and Sen. Robert Casey (D-Pa.) introduced a bill to reinstate the subsidy and pay for it by eliminating a tax break on annuity trusts. The proposal would again be retroactive for those who lost their jobs since June 1 and would extend the subsidy for six months instead of the 15 months.  More information as it becomes available.

July 22, 2010: Congress approves legislation earlier that restores unemployment benefits to people who have been out of work for six months or more, after a seven-week interruption that caused 2.5 million people to lose unemployment benefits. There was, however, no measure to extend the subsidy for COBRA benefits. The final day that an employee can qualify for subsidy eligibility remains 5/31/10.

April 15, 2010: Lawmakers extend COBRA subsidy period to May 31st, 2010.  Maximum period of total eligibility remains 15 months.

March 2, 2010: (amended, see above) The American Recovery and Reinvestment Act of 2009 (ARRA) is amended to include an additional month of COBRA subsidy eligibility for Assistance Eligible Individuals.  Anyone involuntarily terminated after 3/31/10 is not eligible for subsidy benefits provided by the ARRA.  More information on this can be found here.  

February 28, 2010: Last day (amended, see above) of potential subsidy eligibility for “Assistance Eligible Individuals.” 

 

2009

December 19, 2009: Senate passes Department of the Defenses Appropriations Act, extending the COBRA subsidy first enacted by the American Recovery and Reinvestment act.  This extends the subsidy qualification period an additional two months, to February 28, 2010.  The ARRA previously provided subsidy benefits for those terminated prior to December 31, 2009. 

This act also extends the maximum subsidy eligibility period from 9 months to 15 months.

November 19, 2009: Total COBRA eligibility period extended from a maximum of 18 months to 36 months.  More on this can be found on the NY State website.

February 17, 2009: American Recovery and Reinvestment Act (ARRA) was enacted by the United States Congress. This law drastically changed COBRA benefits for employees who were involuntarily terminated.  Those who are considered as “Assistance Eligible Individuals” will be eligible for a 65% government subsidy, or discount, off their COBRA monthly premium. The COBRA participant will be responsible for paying the remaining 35% of their premium. 

Contact Bene-Care for more about the qualifications for “Assistance Eligible Individuals”

Click Here for a COBRA Subsidy Fact Sheet (provided by the US Department of Labor)

 

Click here for an overview of COBRA as part of the American Recovery and Reinvestment Act

 

 

* Any information provided by this website may no longer be viable subsequent to its issuance. Any information it provides is developed at the time of its issuance based upon facts and circumstances known at that time.