COBRASOURCE is a premier provider of COBRA insurance, benefit administration and Flexible Spending Accounts for your employees. By outsourcing these HR benefits to COBRASOURCE, you will benefit from the transferring of liability from your organization, streamline your employee health insurance operations and ensure compliance with regard to claims administration, COBRA health insurance, FSA benefits, and cafeteria plans. Our team of employee benefit experts possesses years of experience in the field, and our customized COBRA and insurance coverage software will provide seamless integration of your health insurance benefits.

As an HR administrator, you have many important duties to manage on a regular basis, especially when it comes to handling the many facets of employee benefits administration. COBRASOURCE can handle the details of your health care benefits package on your behalf, from health care claims to health insurance billing. Additionally, as insurance administration experts, we will monitor and keep you apprised of any changes to the COBRA law that you should be aware of, as well as modifications to IRS tax codes as they relate to employee benefits.

Health care benefits are important not only to you, but your employees. They count on their health benefits, including dental healthcare and child health insurance, to be administered properly and expect to be protected through HIPAA compliance. And, employees not only want their health insurance coverage to be first-rate, but they want their medical claim forms to be simple and their health insurance claims to be handled with ease. We can give you and your employees the peace of mind that the details are managed appropriately every step of the way.

And, while employee health benefits are important to your staff, each of your employees has different health coverage needs. This is why a cafeteria plan, also known as a Section 125 Plan, is essential. Through this plan, employees can obtain health insurance, select a flexible spending account, and more. Implementing a Section 125 plan provides tax savings advantages for both employer and employee, with both parties saving on taxes and increasing spendable income, while remaining compliant with IRS regulations.

An additional benefit to both employers and employees is the Health Reimbursement Account. The HRA offers employees a substantial tax savings of up to 35% on health care related costs that are not covered by medical insurance. With our assistance, and through the FSA worksheets, FSA participants will establish a realistic medical savings account. Throughout the year, FSA participants will draw on this account to pay for prescriptions, deductibles, co-pays, etc., using pre-tax dollars.

Although you may feel well-equipped to handle your employee benefits internally, you need to consider the wide range of benefit needs of your employees, the sheer time it takes to administer these benefits, and the different rules and laws that you need to know. Don’t leave your organization open to potential risks of non-compliance. Let the experts at COBRASOURCE streamline your employee benefits administration. From managing employee benefit plans to providing assistance with specific health administration needs, we can ensure your company’s compliance and your employee’s satisfaction.

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A word from our President...........

YOUR GREATEST UNFUNDED LIABILITY

You have just said goodbye to a dear employee who has been with you for years. Or, you are saying good riddance to the slacker that has finally left your employment. You sigh deeply, perhaps out of relief; but now that they are gone, have your responsibilities come to an end? The answer is No.

Did you inform your employee of their COBRA rights? Now, you might say, "I offer COBRA continuation, so this doesn't apply to me." Well, offering COBRA continuation is not as easy as it may first appear. How did you offer coverage? Can you provide proof in a court of law that you offered continuation benefits? Are your procedures in writing? The questions continue and for the 96% of all employers with 20 or more full and part time employees, the answers are No, No, and No.

Herein lies your greatest unfunded liability. With over 160,000 complaints to the Department of Labor and countless others settled before the complaint is registered, COBRA can be devastating to an employer. COBRA is an employer law. Forget about the insurance company sending a notification letter. Even if they do, it doesn’t matter because it is ultimately your responsibility.

By not notifying your employee properly with Department of Labor approved letters, you are obstructing their rights. Should a complaint be filed through the Department of Labor, the IRS will be calling you, and the Excise Tax Specialists will assist you in spending some or your hard-earned dollars on non-deductible fines and penalties. These penalties can be as high as $210 per day, per employee, from the date you became non-compliant going back over the past 3 years. Possibly the easiest and most proficient method of dealing with the complexities of COBRA is through an out-sourcing service. Should you have any questions about our COBRA responsibilities, please contact an expert in the field and avoid paying high penalties!

John Blaida, COBRAsource, Inc.