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New Program Provides COBRA Relief for Third Party Administrators
Date:1/13/2010

MISSION, Kan., Jan. 13 /PRNewswire/ -- COBRAGuard, a certified COBRA administrator, announces the launch of a Third Party Administrator (TPA) program. Under the new program, COBRA administration is put into action under the TPA's own brand, allowing seamless value delivery. The TPA gains COBRA efficiencies and expertise without sacrificing the consultative client connection. Services include a dedicated phone line, dedicated account representatives, private labeling, comprehensive COBRA reporting including ARRA 941 and monthly remit reports, shared staffing arrangements and preferred tier pricing.

COBRA has always been complex to administer. But now, with the American Recovery and Reinvestment Act of 2009 (ARRA) premium subsidy and the recent extension, administration is more difficult than ever before. For third party employee benefit administrators, there's never been a better time to address this pain point by outsourcing COBRA responsibilities to a specialist.

ARRA, which was enacted in February 2009, includes a 65 percent COBRA subsidy that helps defray COBRA insurance premiums for up to nine months. A December 19 bill extended the COBRA subsidy expiration date from Dec. 31 to Feb. 28, 2010, and added six months to the subsidy to allow for a maximum of up to 15 months of assistance.

"Since the subsidy was introduced, studies have shown that the number of COBRA participants has doubled and the amount of work related to COBRA administration is three to five times what it was due to the confusion, tax implications and new reporting requirements under ARRA," said Cathryn Scivicque, Vice President of Employer Services. "For many third party health administrators, the best way to navigate through all of this is by outs
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SOURCE COBRAGuard Inc.
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