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COBRA Services
- Am I legally required to offer COBRA
to my employees?
- What are the penalties if I don't offer
COBRA?
- Can I lose my business if COBRA
is not administered properly?
| The IRS estimates
that 90% of all employers that are subject to COBRA are
not in compliance. Also, COBRA policies and procedures
are a standard component of any IRS corporate audit. |
- To avoid penalties
- To have trained personnel responsible
for administration
- To keep employers in IRS compliance
with notifications,
record maintenance, and billings
We understand that one small mistake can
spell disaster. Every single detail must be handled correctly
the first time, every time.
Avoiding these risks that are involved
in keeping compliant with two of the federal government’s
most complex and onerous laws is an enormous responsibility.
Therefore, NovaSys can assist you with this function. We can
eliminate this time consuming task from your duties and give
you more time to focus on your overall corporate needs.
We have trained staff dedicated to this
function and they devote their time to making sure that everything
is completed in a timely and accurate manner. Don’t increase
your payroll budget, we already have the staff.
The COBRA concept is
simple. Meeting COBRA requirements is not.
NovaSys health assists Benefit Plan Administrator
to provide notifications and services as indicated below:
- Initial Notification by First
Class Mail with Proof of Mailing to:
- Employees who first become
eligible under Covered Benefit Plans after
the effective date of this agreement
- All employees who are participants
under Covered Benefit Plans on
the effective date of this agreement
- Qualifying Event Notification by First
Class Mail with Proof of Mailing Certification by U.S. Postal
Service to Qualified Beneficiaries for Qualifying Events
occurring after the effective date of this agreement.
- Certificate of Coverage Notification:
Initial Certificate included with Qualifying Event Notification
and Second Certificate following termination of COBRA.
- Update Notifications by First Class
Mail to Covered Employees, COBRA Participants, and/or Qualified
Beneficiaries as may be required by amendments to the Acts
and the regulations, or changes to covered benefit plans.
- Termination Notification upon nonpayment
of premium or end of COBRA term.
- Billing, premium collection,
and remittance to Company. NovaSys Health will retain any
administrative fees added to premiums charged by the insurer.
- Maintain computer and/or physical
records of all notices.
- Maintain a database of qualifying beneficiaries
to whom any notifications have been sent. Data will include
all pertinent information reported by the employer.
- Provide employers with confirmation
reports of all activities.
- Notify employer of any discrepancies
or conditions it discovers during the course of its operations
that may require action by the employer.
- Notify employer of known changes or
updates relating to compliance with the Act.
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