COBRA Invoice?

Andrea 2

[font size="1" color="#FF0000"]LAST EDITED ON 10-03-07 AT 08:40AM (CST)[/font][br][br]We recently had an ex-employee elect COBRA. We have had several employees over the last 10 years that are eligible for it, but this is the first employee who has elected it.
By law we do not need to send an invoice to her for her payments to be made to us. I decided to send the first invoice to the ex-employee as the rates of the insurance had changed (due to our anniversary enrollment date) (don't get me started on the increase we saw!).
Sending a monthly invoice to the ex-employee would have an impact on our staff (time and money). Would it be to the company's benefit to send a monthly invoice? The ex-employee will probably be on COBRA for 18 months.
For those of you who have handled COBRA issues yourself, I would like your input. Plus any tips on handling COBRA in-house.
I know that there are out sourcing firms that handle COBRA claims, but the cost and time is not worth it at this point.
Thanks!

FunHRBanker

Do you have a self-funded insurance plan? We do COBRA in house, but are fully insured. I do not invoice COBRA participants. It is their responsibility to submit payment in a timely manner. I would not send monthly invoices.

Andrea 2

Thanks for the reply.
We are fully insured but administer COBRA in house. If the employee has sent back the COBRA election form, how do you inform the employee when the payment is due each month? Or do you place that information in the letter when you send the election form after they leave the company?

FunHRBanker

This is in the election form. Our payments are always due on the 1st. If they have late payments, you can terminate their COBRA (of course, they have a grace period also).

dlail

Once an employee returns the form electing continuation, we send a letter confirming the election and the retroactive date, and the due dates of retroactive to current premiums, and then prospective premiums. We include a boxed notice in the letter than states we will not issue invoices. We do, however, include a chart (excel) with future due dates and columns for date paid and check number or whatever payment form. It's the printout of the chart we use to record payments.

jmcaa

[font size="1" color="#FF0000"]LAST EDITED ON 10-04-07 AT 08:49AM (CST)[/font][br][br]With our Third Party Administrator, when someone elects COBRA they send out a notice along with coupons for payments.

Beverlee

[font size="1" color="#FF0000"]LAST EDITED ON 10-15-07 AT 12:53PM (CST)[/font][br][br]Until we got a TPA for our COBRA admin, I handled it. It took all of about 5 minutes to send the invoice. I kept it in a WORD file, changed the date each month, and sent it out. This way each notice was dated, and included the grace period date. The most I ever had at one time was 6 participants. Over the course of 5-6 years, I had to terminate three for non-payment. When I received the payment, I made a note on the invoice, then sent the money to the Treasurer.

They also received notices of open enrollment and rate changes. While I no longer have the responsibility- the whole thing didn't take more than 20 minutes or so a month.