COBRA Administration
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is a law that requires organizations with 20 or more employees to offer the continuation of group health benefits to employees for up to 18 months, in some cases for covered dependents up to 36 months, upon experiencing a "qualifying event."
At Benefit Management, Inc. we offer a cost effective COBRA administration program that will keep you in compliance with federal and state laws. The administration of COBRA benefits is very time consuming and outsourcing these administrative functions will relieve you from the day to day tracking, notification and billing processes required for compliance. A law that is not to be taken lightly, the IRS penalties and civil liabilities served under COBRA will put a non-compliant employer at risk. BMI can administer the total package from employee notification to premium collection, and ensure your company's adherence to the law.
Not all needs may be met with group products. Voluntary products are designed to fill the gaps for employers who want to provide a comprehensive insurance program to employees, but cannot justify the cost. These products allow any of the members of your organization to choose what is important to them at no cost to the employer. Using payroll deduction minimizes your involvement in their program and allows your employees to enjoy pre-tax savings. Additionally the employer will save by reducing FICA contributions. The following products are available through a variety of vendors:
- Accident Insurance
- Cancer Insurance
- Hospitalization Insurance
- Illness Insurance
- Life Insurance
- Short Tem Disability
- Long Term Disability
Short term health insurance is available for those individuals needing health insurance protection within a limited time period. These individuals may be new employees and their dependents not yet eligible for your group insurance or dependents losing eligibility.
Group and individual consultations are available upon request.
Consolidated Billing
Another service to being partially Self-Funded with BMI is the simplicity of Consolidated Billing. BMI is the single source billing and eligibility maintenance of your client’s health plan vendors. No longer will the HR department have to process multiple applications and send to various locations. With Consolidated Billing, your HR department will receive one itemized bill for all of your employee benefits.
Dependent Audits
With the rising costs of health care climbing each year, companies are looking for ways to control costs. One way to control cost is to ensure that their benefits are being offered to only eligible dependents defined by their health insurance plan. Dependent Audits request proof of dependent status from each employee with dependents on the plan.
On average approximately 10% of all dependents are ineligible to be covered by the plan. Averages suggest that each eligible dependent cost the plan $2,500 a year. The saving potential is substantial.
Dependent Audits Timeline
Phase 1: Planning Period
- Develop Timeline for Amnesty and Verification Process
- Determine Eligibility
Phase 2: Initial Communication
- Inform Employees of eligibility audit
Phase 3: Amnesty Period (3 Weeks)
- Amnesty notice distributed to all employees
- Compare post-amnesty period with prior enrollment
Phase 4: Eligibility Verification Period
- Notices distributed to all employees with dependents (Defines acceptable forms of proof)
- BMI – Collect, Review and Process all eligibility verification documents
- Report to employer all employees with depends failing to:
- Satisfy Eligibility requirements
- Produce adequate documentation
- Respond to documentation
