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COBRA Premium Billing Administration
***March 22, 2021 COVID-19 COBRA UPDATE***
Medcom will send two different communications in the next week regarding the Outbreak Period and ARPA. The Outbreak Period extended timeframes to 12 months per individual or 60 days after the end of the national emergency, whichever happens first.
Some of the extended timeframes include the 60 day period to elect COBRA, the premium grace dates, HIPAA special enrollment rights, just to list a few. Since this extension period is optional for any public entities such as a city, county, or school, we will provide a link that will allow employers to opt-out. Churches that elected to be covered under ERISA are required to participate. For all employers that are not exempt, we will have two different options:
- Medcom will provide the forms and the employer would be responsible for the mailing. There will be no charge.
- Medcom will mail the forms for a cost of $3.00 per form. Once services are completed, the fee will show on the next monthly invoice. For brokers that are paying the administration fees for their clients, we will be charging you the fee, and it will be your decision as to whether to pass it on to the employer.
ARPA has several notice requirements for the subsidy that will be required for all employers. This is not an optional service and is even required for public employers and state continuation. The model notices for ARPA are expected to be provided on or before April 10, 2021. The additional charge to send the ARPA letters is $5. We will provide an email with instructions to review and audit for any missing individuals that were involuntary terminated or had a reduction of hours back to November 1, 2019. We will provide an ACH link for the employer to complete so that Medcom can draft the 2% fee from each employer. The ACH draft will be required and is not optional. Once services are completed, an additional fee will show on the monthly invoice. For brokers that are paying the administration fees for their clients, we will be charging you the fee, and it will be your decision as to whether to pass it on to the employer.
We appreciate your patience in these times, and we will work through these changes together.
Medcom Benefit Solutions is experienced and well-equipped to comprehensively handle your administrative needs. We possess in-depth knowledge of federal COBRA requirements and regulatory compliance. Medcom provides premium payment coupons, receives and tracks payments, and notifies participants of “short premiums” and NSF checks. Retiree Billing coupons can be customized for monthly, quarterly, or end-of-rate payments as well.
Medcom also offers a variety of COBRA and Retiree Billing payment options. Consolidated premium payments are returned to the plan sponsor on a monthly basis. We provide carrier notifications when coverage is terminated, in addition to all federally required notices, including COBRA, COBRA election, open enrollment, qualifying event, short pay, conversion, extension, and termination.
COBRA Administration
Medcom Benefit Solutions offers a single, fully-integrated and easy-to-use platform for COBRA administration, and a turnkey solution for the administration of the COBRA benefits. All federally required notices are provided, including initial COBRA, COBRA election, open enrollment, qualifying event, short pay, conversion, extension, termination and other notices
Our robust online web portal is available to serve employers and participants 24 hours a day, 7 days a week. Medcom provides standard daily online reporting of generated letters, member status, terminations, initial notices, and paid-through-date. Detailed custom reports covering any desired time period can be delivered to the web on your specified time frame.
Retiree & Direct Billing
Medcom Benefit Solutions offers a single, fully-integrated and easy-to-use platform for Retiree Billing and Direct Billing administration, as well as a turnkey solution for the administration of these benefits. Upon notification of an employee’s retirement, Medcom initiates communication with the retiree and carriers to streamline the enrollment process. Our online web portal is available to serve employers and participants 24 hours a day, 7 days a week.
Medcom provides standard daily online reporting of generated letters, member status, terminations, initial notices and paid-through-date. Detailed custom reports covering any desired time period can be delivered to the web on your specified time frame.
