 COBRA administration can be a challenging, risky and time-consuming element to administering employee benefits. Federal Regulations require that you notify employees of their rights to continue their group benefits in a timely manner. Failure to meet established mandates can result in costly lawsuits or litigation. COBRA is a federal law and jurisdiction over issues involving notification of those laws lies with the U.S. Department of Labor (DOL). Employers that fail to comply with the notification rules may face fines up to $110 for each day no notice is sent after the notification deadline. In addition, the IRS can assess an excise tax against any company that does not comply with COBRA regulations. Outsourcing COBRA administration to a third party administrator saves you time and limits your exposure to the risk of COBRA-related litigation. Not only do we give you the flexibility to determine how to manage post employment coverage, we also provide free COBRA service to all qualified employers. (Hanson Benefits maintain the rights to choose the vendor for paid services.) Services Include: * Notifying qualified employees and providing them with the benefit options and enrollment forms * Setting up a billing system and collecting monthly premiums * Remitting monthly premiums to your insurance carrier(s) * Monitoring time limitations for the employee's COBRA coverage and maintaining the necessary correspondences * Providing a monthly report to you of all transactions
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