Employer-facing info on COBRA managed by the plan's TPA.
How does this work?
- Termination: This will occur either manually through eligibility changes managed by the employer or automatically through an updated file from a Human Resources Information System (HRIS).
- When a member is terminated and they are COBRA eligible, the TPA updates their status to ‘COBRA Pending, Awaiting Election’
- The TPA will not invoice the Employer for their coverage post-End Date
- Notice sent: The TPA sends a COBRA notice to the member via Certified Mail and by email
- If a member opted in electronic communication, then only an email is sent
- Portal updated: If the member chooses to do so, they login to the portal and complete the ‘Elect COBRA’ electronic form and be prompted to connect their bank account
- COBRA Coverage: The TPA will then Update their status to ‘COBRA Active,’ generate their monthly invoice, and pull the premium amount from their connected bank account each month
What are the TPA’s responsibilities?
- Sends timely COBRA election notices
- Tracks election deadlines and grace periods
- Processes election decisions
- Collects members’ premium payments
- Manages coverage activation and termination
- Communicates status to members and vendors
- Ensures compliance with federal COBRA rules
- Continue to administer plan benefits to COBRA-elected members