Clarity Benefit Solutions Provides Tips to Manage COBRA Compliance

NEW YORK, Dec. 27, 2017 /PRNewswire-iReach/ -- COBRA administration company, Clarity Benefit Solutions provides tips to manage COBRA compliance.

The Consolidation Omnibus Budget Reconciliation Act (COBRA) was passed in 1986 to allow an employee to continue to have group health benefits after leaving his or her place of employment. Managing COBRA compliance can be quite a challenge to employers. If they don't have a thorough understanding of the requirements, they can incur costly penalties and liabilities. Currently, the Employee Retirement Income Security Act (ERISA) regulations permit personal liability to be imposed on the employer for any COBRA violations. The following are important tips to help employers stay abreast of COBRA rules and regulations.

  1. Keep educated and current. The Affordable Care Act (ACA) is currently in a state of uncertainty. Changes to this act could have an impact on complying with COBRA mandates. It is vital that COBRA administrators are up-to-date with the latest happenings.
  2. Put it in writing. It is vital that COBRA administrators maintain a paper trail. Send COBRA participants monthly invoices with the amount due and the end date of the 30-day grace period.
  3. Offer numerous payment methods. Allow COBRA participants to choose a payment method best suited to his or her needs. Options include: automated recurring payments, PayPal, credit cards, and the Automated Clearing House Network (ACH).
  4. Do not permit late payments. Do not allow COBRA participants to send their payments in after the due date. To keep their COBRA benefits, they should make their payments on or before the date on their monthly invoice.
  5. Embrace technology. When it comes to managing COBRA compliance, take advantage of all that technology has to offer. Send former employees payment reminders via automated messages, email, and text messages. Use letters and phone calls as a back-up.
  6. Partner with a COBRA administration company. Companies such as Clarity Benefit Solutions have a COBRA web-based software program that streamlines compliance with automated notifications about important life event changes, qualifying events, pending payments, and account updates—providing the employer with peace of mind that compliance is being managed effectively and efficiently.

About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.

Media Contact: Calvin Clark, Clarity Benefit Solutions, 732-428-8272,

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SOURCE Clarity Benefit Solutions



Insurance, Human Resource & Workforce Management, Health Insurance

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