COBRA

The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 requires employers of 20 or more full time equivalent employees to offer their employees the opportunity to continue their group healthcare coverage under the employer's plan, if the coverage would end due to employee termination, layoff, or certain other employment status changes (referred to as "qualifying events"). This includes any event that changes the employee's eligibility for benefits except gross negligence. The continuation of coverage applies to surviving spouses, ex-spouses, and dependents of employees as well.

Even though the law impacts healthcare insurance, COBRA is an "employer law". This means that the employer has certain responsibilities under COBRA and is liable for COBRA failures. Non-compliance can result in financial penalties to the employer.

As a result, proper notices and tedious recordkeeping make COBRA a perfect opportunity for outsourcing to Sterling to provide COBRA administration.

Sterling Health Services Administration will establish and maintain an integrated COBRA and HIPAA system for employers. We'll manage and control plan administration, required documentation, and adherence to the law's eligibility requirements, working with the employer.

We offer standard and optional COBRA services. Our fees are based on the employer's choice of services and the total number of COBRA eligible employees in the company. As with all of our products, Sterling provides a high level of personal service on the phone, online and via email to employers and employees who use Sterling to administer plans.

A short narrated overview of our online COBRA tools to manage your account and view reports, is available here.