How does this work?
Termination: This will occur either manually through eligibility changes managed by the employer or automatically through an updated file from a Human Resources Information System (HRIS).
When a member is terminated and they are COBRA eligible, the TPA updates their status to ‘COBRA Pending, Awaiting Election’
The TPA will not invoice the Employer for their coverage post-End Date
Notice sent: The TPA sends a COBRA notice to the member via Certified Mail and by email
If a member opted in electronic communication, then only an email is sent
Portal updated: If the member chooses to do so, they login to the portal and complete the ‘Elect COBRA’ electronic form and be prompted to connect their bank account
COBRA Coverage: The TPA will then Update their status to ‘COBRA Active,’ generate their monthly invoice, and pull the premium amount from their connected bank account each month
What are the TPA’s responsibilities?
Sends timely COBRA election notices
Tracks election deadlines and grace periods
Processes election decisions
Collects members’ premium payments
Manages coverage activation and termination
Communicates status to members and vendors
Ensures compliance with federal COBRA rules
Continue to administer plan benefits to COBRA-elected members