COBRA Outsourcing Services

COBRA regulations are complex and administering the services is time consuming. Ensuring continued compliance of changing regulations is a real concern for employers. IOI gives clients a way to eliminate the burden associated with COBRA by offering a fully outsourced solution.

Our outsourced package includes:

  • Initial COBRA Notification Letter
  • COBRA Event Notification Letters
  • Transaction Summary Reports
  • Premium Collection
  • Premium Statements
  • Informational Support
  • Determination of Eligibility
  • Document Archives

Product Overview

IOI has a strategic alliance with Independent Benefits Association (IBA) to provide COBRA administration services. Independent Benefit Association is a full-range employee-benefit administrator with over 45 years service. They provide administrative services related to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Services include production and distribution of Initial COBRA Notifications to new employees, COBRA Notification Letters to terminating/retiring employees, direct communication with the participating employers regarding correspondence with all employees.

COBRA pricing is based on actual COBRA activity only. Initial COBRA notices are $5.00 each and COBRA qualifying event notices are $11.00 each. The 2% allowable administrative charge is collected from the employee and is retained by IBA. There is no monthly minimum or service fee.

Once enrolled for COBRA services, an initial notice will be sent via regular U.S. Mail Service to each employee. Thereafter, qualifying event notices are sent via registered U.S. Mail Service as events occur.

Employees who elect COBRA services will receive a monthly billing for premiums sent via regular U.S. Mail Service.