Why should your company outsource COBRA administration?
January 22, 2024
Is your small business compliant with COBRA laws?
Outsourcing COBRA administration can give your small business a range of advantages, including saving time and money, avoiding costly penalties, receiving top-notch customer service, and accessing advanced technology and reporting capabilities.
When choosing a third-party COBRA administrator, it’s important to select a provider with a strong reputation for compliance and customer service, as well as the expertise to handle all aspects of COBRA administration.
Save Time and Resources
When you outsource COBRA administration, you’re relying on experts who specialize in compliance. This means that you don’t have to dedicate time and resources to train someone on your staff to handle COBRA for your company, and you don’t have to be concerned with them staying current on ever-changing regulations. Outsourcing allows you to focus on running your small business rather than the minute tasks of managing COBRA. SBAM’s COBRA administration team knows all the details of the laws and regulations so you can be confident you won’t face any penalties for making a mistake.
To manage COBRA administration well, it requires a substantial part of your budget including printing and mailing COBRA notifications and maintaining accurate records. When you outsource COBRA administration, you can reduce the overall cost of COBRA administration.
Additionally, outsourcing COBRA administration can help your business avoid costly penalties. COBRA compliance is governed by strict regulations, and failure to comply can result in costly penalties and legal fees. Outsourcing COBRA administration ensures that your business follows all regulations, reducing the risk of penalties and lawsuits.
The SBAM COBRA team has all the expertise and resources to handle the entire process for you, from initial notification to premium collection and reporting, starting at only $35 per month – a lower cost than if you were to handle it yourself.
Improve Service for your Employees
Outsourcing COBRA administration can also provide your employees with a high level of customer service. Third-party COBRA administrators specialize in handling COBRA compliance, which means that they have the expertise to answer your employees’ questions and concerns quickly and correctly. This can help your employees feel more secure in their coverage and reduce the likelihood of misunderstandings or disputes.
Access to Advanced Technology
Finally, outsourcing COBRA administration can provide your business with access to advanced technology and reporting capabilities. The SBAM COBRA team has advanced systems including online enrollment portal and automated billing and reporting. These systems can help streamline the COBRA process and reduce the likelihood of errors or delays. Additionally, we can provide your business with detailed reporting capabilities, giving you better visibility into your benefits program and helping you make informed decisions about your benefits offerings.
With the right COBRA administration partner, you can simplify your benefits program and ensure compliance, giving you more time to focus on growing your business. Learn more about the COBRA administration services available to you as an SBAM member at www.sbam.org/cobra