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Integrated COBRA Compliance

With virtually no additional work required, COBRA compliance is automatically initiated when a qualifying event is entered into the system.

United HR Automates the Required COBRA Correspondence

When a qualifying event is entered United HR responds by sending out the required notice the next business day by Certified Mail.

COBRA Administration Simplified

United HR manages date tracking and premium payments for your current and former employees who are COBRA eligible, including correspondence regarding their continued health insurance coverage and processing health insurance premium payments.

Ensure COBRA Compliance

COBRA compliance requires diligently following regulated steps and documenting those steps. The penalties for non-compliance are severe.

What happens when someone elects COBRA coverage?

United HR acts as the Third Party Administrator and works with the client and the employee to assure compliance with Federal regulations.

Do I need to be a United HR payroll user to use your COBRA administration product?

Yes. United HR's COBRA administration is integrated with our payroll system and will work most efficiently with our payroll clients. Please call 602-443-0500 for a quote.

Penalties for COBRA Non-compliance

The IRS can impose an excise tax penalty of $100 per day per violation ($200 if there is more than one qualified beneficiary).

ERISA can impose a penalty of $110 per day per violation that must be paid to the qualified beneficiaries.

In addition to the IRS and ERISA penalties, not following proper COBRA procedures could result in an employer self-insuring an employee or their beneficiaries who may have lost health insurance coverage when COBRA should have been offered. These types of medical claims, along with the legal fees to defend them, could exceed hundreds of thousands of dollars and there is no cap on this liability.