COBRA Administration

What we do

Over the years, what started as a basic benefit for terminating employees has grown increasingly complicated. Let us be the COBRA expert so you can focus on your business.

Why SBA for COBRA Administration?

Our comprehensive process and knowledgeable staff keep your company compliant while utilizing the communication method that causes you the least amount of stress. And, although COBRA participants are typically no longer your employees, guiding them through a complicated and confusing process is important to us.


COBRA Basics:

Who is a COBRA eligible employer?

COBRA eligibility is established each January 1st. If a company had 20 or more employees for 50% or more of the last calendar year, they are a COBRA-eligible employer for the calendar year, even if they dropped below 20 employees. 

What benefits are considered COBRA eligible?

COBRA eligible benefits are: group medical, dental and vision plans, Health Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA), stand-alone telehealth plans and Employee Assistance Plans (EAP) when it has a medical and/or counseling component.


SBA’s COBRA Administration Timeline:

At setup:

A bulk of the work for new groups is in the initial setup. Our proven process makes this work simple for all parties. We will:

  • Ensure thorough, accurate census gathering,
  • Gain authorization with insurance carriers,
  • Manage the take-over of current COBRA participants,
  • Handle mailing current employees/covered dependents required Initial Notices, if they have never been mailed previously,
  • Provide online training so employers can easily add, change and mark someone as needing a COBRA notice on our secure website.

Monthly Administration:

  • We collect premiums and administer their timeliness.
  • We enroll new COBRA participants in the insurance benefits they elect.
  • We mail COBRA payment coupons.
  • We answer all COBRA participant questions throughout the entire time of COBRA eligibility/enrollment.

At renewal:

  • We reach out to brokers about 20 days before clients have a benefit that renews asking for finalized plan and rate changes.
  • We handle all Open Enrollment communication to the COBRA participants and will send them Summary Benefit Coverage (SBC) documents so they will know how their coverage has changed.

Our latest subject matter articles

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For Whom the COBRA Deadlines Toll

On April 28th deadlines were “tolled” for special enrollment periods, COBRA elections and payments, employer notices, and claim payments. This has opened a pandora’s box. Deadline relief is being implemented retroactively to 3/1/2020. There’s no definitive end to the new deadlines. What could possibly go wrong? Our guest blogger, Sandy Wood, outlines the issues.