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COBRA Administration

COBRA Administration in Lowell, MA

The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires that employers follow specific guidelines when notifying individuals of their benefit continuation rights under Health and Welfare plans. Employers may face heavy government fines and penalties if found in non-compliance of COBRA requirements.

What is COBRA? 

The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers with 20 or more full-time and/or part-time employees to continue offering group health insurance to employees and their dependents upon the occurrence of a qualifying event. In addition, many states extend COBRA requirements to employers with less than 20 employees. 

COBRA requires that employers follow specific guidelines when notifying individuals of their benefit continuation rights under Health and Welfare plans. Employers may face heavy government fines and penalties if found in non-compliance of COBRA requirements. Excise penalties for unintentional administration failures can be as high as $100 per affected person per day of non-compliance, up to a maximum of $500,000. Examples of failures that would trigger excise taxes are COBRA notice failures (missing, late, or incomplete initial or qualifying event notices); COBRA premium violations (overcharging, or not complying with grace period rules); and procedural failures such as not allowing COBRA recipients to make changes at open enrollment, or on special enrollment events. 

This ever-changing bundle of legislation is closely monitored to ensure the plan is administered using the most current legal understanding of COBRA. All administration duties are processed accurately and efficiently to ensure compliance with COBRA. Because of the challenges of keeping up with changing federal and state COBRA laws, many employers are following the trend of turning to professional administrators for their COBRA continuation services. 

List of COBRA Administration Services 

  • Preparation and distribution of Initial COBRA Notification to any newly eligible employee enrolled in group health, dental, vision, prescription drug or flexible spending account. 
  • Preparation and distribution of Initial COBRA Notification to any newly enrolled spouse or dependent in a group health, dental, vision, prescription drug or flexible spending account. 
  • Preparation and distribution of Qualifying Event COBRA notifications sent to any eligible employee, spouse or dependent that has experienced a qualifying event that results in a loss of coverage. 
  • Tracking of all applicable time frames for COBRA continuants, including state Mini-COBRA. 
  • Conversion notification to all COBRA continuants upon the cessation of their COBRA benefits. 
  • Termination of coverage notice prepared for all participants at the time their COBRA continuation coverage ends. 
  • Notification to all COBRA continuants for open enrollment. 
  • Notification to all COBRA continuants of plan and premium rate changes. 
  • Monthly direct billing of COBRA continuants. 
  • Monthly remittance of collected COBRA premiums to employer for payment to the carrier. 
  • BenefitsPlus of New York, LLC will retain the 2% administrative fees collected from COBRA continuants.

Related to: Payroll Provider in Lowell, MA, Payroll Processing in Lowell, MA

Resources

Internal Revenue Service (IRS)

  • Federal tax laws, rules and forms
  • Businesses and individuals
  • Independent contractor rules for IRS

U.S. Department of Labor (DOL)

  • Federal wage and hour law
  • Exempt and non-exempt employee status
  • Compliance assistance
  • Independent contractor rules for DOL

Employee Benefits Security Administration

Benefit plan compliance and assistance (health and retirement) COBRA HIPPA

Affordable Care Act Information and Health Insurance Marketplace

COBRA Information & Notices for Continuation of Health Coverage

COBRA Continuation Coverage - Resources for Employers, Advisers, Workers & Families

U.S. Bureau of Labor Statistics (BLS)

Labor statistics & wage data

Reviews

We look forward to working with TPS Group next year

We look forward to working with TPS Group next year

As another year ends, I want to express my sincere gratitude and appreciation to you and TPS Group for assigning us Krista Blier. Krista provides exceptional customer service and has been a major asset to me and Lynch, Traub, Keefe & Errante, P.C. She is extremely knowledgeable and always accessible. Always on top of the RMD’s, giving me an explanation on form 5500-SF to present to Mr. Keefe & keeping us updated with any account changes as well as specifics. It is a relief knowing I have full faith in Krista and can turn a blind eye to our account. I cannot tell you how many vendors/brokers I have to stay on top of and babysit to make sure our deadlines are met and to perform their job duties. Krista is a pleasure to work with and we look forward to working with her and TPS Group next year.

- Michael Panela

Highly impressed with their level of expertise and outstanding customer service.

Highly impressed with their level of expertise and outstanding customer service.

I highly recommend TPS Group and their quality third-party administration for our 403(b) plan. During our long relationship with TPS Group, we have never failed to be impressed with their level of expertise and outstanding customer service. They keep their promises and it’s easy to work with them. Having our own rep Lauren McNabb is a plus!

- Don Senecal

"Extremely Helpful to Our Business"

"Extremely Helpful to Our Business"

Malinda deserves special recognition. She is prompt, courteous, and professional. We find her to be extremely helpful to our business.

- Angela Simino

"Wonderful To Work With"

"Wonderful To Work With"

My go to professional is Des. A wonderful person to work with. We can count on him to handle all of our needs.

- Andrea Blakeslee

"Answers All Of My Questions In A Clear Manner"

"Answers All Of My Questions In A Clear Manner"

Our case administrator, Susan, has been absolutely wonderful and is a joy to work with. She is very knowledgeable, patient, answers all of my questions in a clear manner, and is professional.

- Kathy Townsend

Extremely Valuable to Myself and Our Company

Extremely Valuable to Myself and Our Company

Kathleen has helped me gather info and understand text so many times and is extremely valuable to myself and our company.

- Elizabeth Robison

Very Responsive And Clear To Requests And Questions

Our service representative, Carol, is outstanding and very responsive and clear to requests and questions. Very professional yet pleasant.

- Jane Surmecewicz

They are a pleasure to work with and we highly recommend their services.

They are a pleasure to work with and we highly recommend their services.

For many years we’ve relied on TPS Group’s extensive knowledge and industry expertise to keep us in compliance with state and federal regulations as well as changes in the law. Their attention to detail is just what we need to keep our business operations running smoothly. They are a pleasure to work with and we highly recommend their services.

- Dan Neal

TPS filled in the gaps within our small HR department

Working with Kim and her talented team helped us fill in the gaps within our small HR department. I strongly recommend TPS for HR tasks that don’t warrant hiring a full-time team. Thanks again Kim!

- Jake F

Knowledge and Expertise

Excellent customer service can be hard to find, but not with TPS Group! I know when I do business with Phil Coco, I can expect a quick response. I rely on his knowledge and expertise, and highly recommend TPS Group for their pension services.

- Mark Catullo

Dependable, experienced, and professional

Dependable, experienced, and professional

Dependable, experienced, and professional, our TPS Group recruiter was an invaluable resource, helping us locate and vet quality talent.

- Tyler R. Vunk

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