Cobra Administration

Why Outsource COBRA Administration?

COBRA is a federal law that applies to group health plans sponsored by employers. Because it is a federal law, the penalties imposed on an employer when they do not comply with the COBRA laws are steep. Failure to supply COBRA notices and/or requested documents can cause $110 a day penalties to employers.

Triggering COBRA events for employees, spouses and children are:

  • Voluntary or involuntary termination of the covered employee’s employment other than by reason of gross misconduct
  • Reduction of hours of the covered employee’s employment
  • An employer’s bankruptcy

Triggering COBRA events for employees, spouses and children are:

  • Divorce or legal separation of the covered employee from the employee’s spouse
  • Death of covered employee
  • Covered employee becomes entitled to Medicare
  • Dependent child ceases to be a dependent under the terms of the plan

Triggering events must cause a loss of coverage. Not all losses of coverage are qualified events.

Maximum COBRA coverage periods are 18 months for termination of employment or reduction of hours and 36 months for other events. The 18 month period of coverage can be expanded if a disability extension occurs or if there are multiple qualifying events.


When you outsource your COBRA Administration to TaxSaver Plan, you are guaranteed the following services:

  • Full indemnification (based upon the receipt of accurate and complete data)
  • Proof of Mail for all required Notices:
    • Special Rights
    • HIPAA Certificates
    • Initial Rights
    • Plan Changes
    • Partial Payments
    • Address Changed
    • Termination Letters
  • Toll-free number and bi-lingual Representatives
  • Dedicated Account Representative
  • Employer Website access to Participant information, including imaged pdf documents mailed to Employees/Participants
  • Employer Website access to enter new employee/qualifying event information or file feeds accepted
  • Employer Website access to reporting
  • Website access to account information for COBRA Participants
  • Elections processed within 48 hours of receipt
  • Payments processed within 48 hours of receipt
  • Carriers updated within 24 hours
  • Divisional reporting available
  • Premium Remittance/Reporting by the 10th of each month
  • All calls recorded
  • Calls answered within 30 seconds
  • 2 – 4 hour Service Response time

For pricing information, please contact Kelsey Zelazny at 972-391-7338 or