We put all of their benefits on one card backed by intuitive technology that pulls money from the appropriate plan. Participants can obtain additional cards for themselves or their family. What do business owners need to know about COBRA compliance? Many plans have $1 million in coverage after deductibles and coinsurance.

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Industry analyst firm NelsonHall recognized ADP as an Overall Leader in its Benefits Administration NEAT Assessment 2024 for our ability to drive digital transformation and meet clients’ unique needs. Your technology can have a wide-ranging and positive impact. LEAP is our platform that puts everything you need at your fingertips. Is there a topic or business challenge you would like to see covered on SPARK?

Offering group health insurance is a great way to attract and retain talent, but administration can pose challenges, especially when qualified beneficiaries lose coverage. COBRA requires employers who sponsor group health plans to offer continuation coverage to employees, spouses and dependent children when group health coverage would otherwise be lost due to certain specific events. The qualified beneficiaries may have to pay for COBRA coverage themselves, though plan sponsors sometimes provide it at reduced or no cost.

COBRA administration

This article provides general information and should not be construed as legal, HR, financial, insurance, tax or accounting advice. You should consult with your own legal counsel, human resource, accounting or other professional advisor for circumstances pertaining to your business. ADP’s HCM solutions integrate with top benefit carriers, helping streamline the exchange of data for plan setup, enrollment and billing. Your HR and finance teams will no longer need to manually enter benefit plan information and keep it updated across multiple systems.

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The maximum length of time for which continuation coverage must be made available depends on the type of qualifying event that gave rise to COBRA rights. Now, all that information is at an employee’s fingertips and they can understand their coverage, what they’ve chosen, who’s eligible and who their dependents are. From a day-to-day activity perspective, our benefits team especially has seen a big change in the types of questions they’re now being asked. Learn the eight must-haves to attract and retain talent with benefits. We’ve streamlined the way your employees will pay for their commute to and from work. We’ll set them up with monthly savings and a variety of convenient options to pay for their ride.

Tools & Resources

• Simplifying the complexity of benefits with the great service you have come to expect.
• It offers practical information concerning the subject matter, which is provided with the understanding that ADP is not rendering legal or tax advice or any other professional services.
• While we aim to provide helpful and accurate information, please note that the content may not always be entirely accurate.
• Qualifying events include death of a covered employee, divorce from the covered employee and if the covered employee becomes entitled to Medicare.
• We’ve created automated solutions that go to work for you by meeting every regulation.
• The views expressed on this blog are those of the blog authors, and not necessarily those of ADP.

We are a licensed in all 50 states and nationally recognized by the federal health insurance marketplace. Our goal is to sincerely help people access and understand insurance. It should be used as a starting point in analyzing COBRA administration and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter, which is provided with the understanding that ADP is not rendering legal or tax advice or any other professional services. You should seek guidance from your personal business and legal advisor(s) if you need specific advice. COBRA insurance costs can be expensive because most employers require plan participants to pay the full premium.

• We do not endorse any products, manufacturers, distributors, services, health marketplaces, or health plans, and we disclaim any liability for them.
• COBRA administrators may be the employer who sponsored the group health insurance.
• Employers generally must comply if they have 20 or more employees.
• Your HRA plan design is customizable so you have the flexibility to create a benefit your employees want.
• ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog.
• The information provided on the COBRA Insurance website is designed to offer general guidance and is not a substitute for professional advice in medical, psychological, tax, legal, investment, accounting, or governmental matters.

Take your organization to the next level with practical tools and resources that can help you work smarter. Stay in the know on the latest workforce trends and insights. Over the past 20 years, more than 4 million people have obtained insurance through our marketplace. Short-Term Health Insurance is a popular option and available in most states to cover gaps between major medical plans. Due to the complexity of COBRA, the high risk of penalties and lawsuits, and the likely inefficient use of HR’s time and adp cobra services efforts, COBRA administration is a prime candidate for outsourcing.

Our simple, three-step solution will keep your health plans compliant and give you peace of mind. Lean on our direct bill solution to manage premium payments for individuals in your retiree population or those who are furloughed or on leave of absence. And if they have questions, our service experts will have the answers. Your HRA plan design is customizable so you have the flexibility to create a benefit your employees want. Our payment automation capabilities speed up reimbursement for your employees, while our mobile app provides the transparency they need. We manage almost all aspects of our lives from the palms of our hands.