COBRA Administration
How COBRA Administration Is Priced
How COBRA administration are priced: the pricing models you will meet, what drives the cost and the fees that are easy to miss.
How much COBRA administration costs
Common pricing models: per employee per month, per participant, flat fee, per module or bundle, and custom quote. Too few vendors publish comparable list prices for us to give a price range; the models and cost drivers below explain what you will be quoted.
Pricing models explained
- Per employee per month. A fee for every employee enrolled in the health plan, covering general notices and readiness to process events, common for full outsourced service.
- Per participant. A fee per qualified beneficiary or per COBRA participant who elects and pays, sometimes combined with an employee-based fee.
- Flat fee. Per-notice or per-event charges for general notices, election notices and other letters.
- Per module or bundle. COBRA sold as an add-on to a benefits administration platform, payroll service or spending account program.
- Custom quote. Priced after scoping for employers with many plans, entities or carriers.
What drives the price
- Number of employees enrolled in health coverage
- Volume of qualifying events and notices each year
- Number of plans, carriers and rate tiers
- State continuation administration
- Integration with HRIS, payroll and carrier systems
- Bundling with spending account or other benefits administration
Fees to ask about before you sign:
- Monthly minimum fees
- Implementation and takeover fees when you switch from another administrator
- Charges for rush processing during layoffs
- Fees for carrier eligibility files or new carrier connections
- Postage and certified mail passed through
- Whether any part of the premium charged to participants is kept by the administrator
More on COBRA administration
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- COBRA administration for enterprises
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- COBRA administration for mid-sized companies
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- HR software pricing index
Median published prices in every HR category, free to reuse.
Frequently asked questions
What is the COBRA administration fee?
The phrase is used two ways. For participants, the Department of Labor says the COBRA premium cannot exceed 102 percent of the plan's total cost, or up to 150 percent during a disability extension. For employers, it is what a COBRA administrator charges, typically per enrolled employee per month, per participant, per notice or as a bundle. Ask for every fee in writing.
Get exact COBRA administration quotes
Answer a few quick questions about your team and needs to see the products that fit, with their list prices; if a provider works with us, you can ask it for an exact quote.
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