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 outsourcing to a professional," said Robert Meyers, President of COBRAGuard Inc. "Especially now, as employers continue to cut jobs in this economy."
Using a COBRA administrator allows third party administrators to focus on what they do best -- managing employee benefits. And now, with an affordable, private-label option, health TPAs have an unparalleled opportunity to provide customer value while maintaining the highest standards and limiting their professional liability. Outsourcing creates a win for everyone involved.
About COBRAGuard Inc.
COBRAGuard Inc. is a Certified COBRA Administrator (CCA), helping employers control risks and liabilities, prevent adverse claims and save time and money. The company serves more than 3,000 organizations nationwide and it stands behind its services with a 100 percent compliance guarantee. For more information, visit the company's Web site at http://www.cobraguard.net. To learn more about the COBRAGuard's TPA program, contact Rick McCarthy at 913-499-4865 or Richard.McCarthy@Cobraguard.net.
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SOURCE COBRAGuard Inc.