Click here to access our coronavirus (COVID-19) resource center.

COBRA Administration & Health Services

BPS is a Third-Party Administrator for COBRA compliance.

We act as your HR consultants and help guide you through the process to ensure all rules and regulations are handled correctly.

We step-in to help business owners abide by government regulations when it is time to make these harsh decision. We support you, all you have to do is let us know who was termed and we’ll take care of the rest.

We use state of the art tools to keep up-to-date with all COBRA compliance and the paperwork associated. We handle the termed employee’s paperwork and COBRA payments so you can focus on your company. Our goal is to make terminations simple for small business because we know as a business owner your main focus should be growing your business.

General Information

The Consolidated Omnibus Reconciliation Act (COBRA) of 1985 and The Health Insurance Portability and Accountability Act of 1996 (HIPPA) are federal laws put that provide employees with a continuation option of group health coverage after an employee experiences a qualifying event. Employers with 20 or more employees are required to establish COBRA administration for their employees. To qualify for COBRA as an employee, you must qualify for specific criteria like Plans, qualified beneficiaries, and qualifying events.

Plan Coverage
Applies to the breakdown of how to calculate the number of employees working at the company during a one-year time frame. Which helps determine whether a company is subject to COBRA rules and regulations.

Qualified Beneficiary
You must have specific immediate family listed as your beneficiary. This individual is most likely covered by the group health plan on the day before the qualifying event happens.

Qualifying Event
Qualifying Events – Refer to events that would cause an individual to lose health coverage.

Qualifying events for employees:
– Voluntary of involuntary unemployment for reasons other than gross misconduct.
– Reduction in the number of hour of employment

For Employees

COBRA is the insurance you qualify for when you are terminated from your job and have the option to continue your insurance at the company’s group-benefit rates. BPS is a Third Party Administrator (TPA) between the company and former employee to accommodate continued coverage. COBRA only keeps you locked in at the employer’s current rate, it does not require the employer to make contributions which is why COBRA may seem more expensive. COBRA is important because group-benefit rates are cheaper and the plans are more comparable than the rates in the individual insurance marketplace.