Guest Regina Lightner Posted August 2, 1999 Share Posted August 2, 1999 I have been to several seminars and have read several articles which recommend that companies have their COBRA procedures audited periodically. My problem is that I can't find an independent firm who does this. I can only find insurance brokers and COBRA administration firms. I don't want to be "sold" insurance or COBRA administrative services. Does anyone know a firm that does an objective COBRA audit? Link to comment Share on other sites More sharing options...
Linda Posted August 2, 1999 Share Posted August 2, 1999 You may want to use an employee benefits lawyer for this. Make sure you are working with someone who knows health plans. (Some benefits lawyers seem to specialize in retirement plan issues.) Link to comment Share on other sites More sharing options...
Guest Regina Lightner Posted August 2, 1999 Share Posted August 2, 1999 Thanks, Linda. We try to avoid using our employee benefits attorney for things like this because he charges us a lot of money even if he doesn't know the subject matter very well. Do you know a firm that specializes in COBRA audits (law firm or otherwise) that will not charge us an arm and a leg? Link to comment Share on other sites More sharing options...
Guest Jenny Littlejohn Posted August 2, 1999 Share Posted August 2, 1999 We had very similar troubles locating an auditor, but got recommendation from our attorney. I have misplaced the auditor's business card, so I can't give you a contact name and phone number. The firm name is BMI Audit Services and their web site at cobraaudit.com should provide you with phone numbers, e-mail access, etc. They did an outstanding job. Our COBRA methods underwent a complete overhaul as a result of the audit, but it was worth the effort. We were doing a lot of things wrong even though our insurance company was telling us that we were ok. Good luck! Link to comment Share on other sites More sharing options...
Guest BENEFISH Posted August 3, 1999 Share Posted August 3, 1999 I've never even thought about having a COBRA audit done. Is that something others are doing? thinking about doing? I'd also like to know what is involved and what an audit costs? Anyone know? Link to comment Share on other sites More sharing options...
Guest Charlie Stevens Posted August 4, 1999 Share Posted August 4, 1999 COBRA audits are a good idea and, while I may be biased about this, I believe that a knowledgeable employee benefits lawyer, who has done COBRA audits in the past, is the best bet. Your purpose is to avoid legal liability for failure to comply with COBRA and a lawyer who has not only drafted and audited COBRA compliance programs but who also defends employers who get into trouble is the best source of advice in this area. Finally, this should not cost an arm and a leg, because a knowledgeable lawyer is also an efficient one. This could be viewed as a "risk management expense" similar to an insurance premium. ------------------ Charlie Stevens Michael Best & Friedrich LLP Link to comment Share on other sites More sharing options...
Linda Posted August 4, 1999 Share Posted August 4, 1999 The scope of a COBRA audit can vary. Generally, I look at a company's notices, election forms, any written procedures and the group health plan SPD(s). (I don't necessarily need to read an entire SPD but I like to see the context of the explanation of COBRA and how COBRA is coordinated with other extensions of coverage the company might offer.) A COBRA audit would also include conversations with the staff about their practices and difficulties. Often, a COBRA audit is part of a larger project involving an audit or redesign of a company's group health plan. I think it is a good idea to revisit COBRA forms and procedures this year in light of the new COBRA regulations which will be effective next year. Link to comment Share on other sites More sharing options...
Guest BENEFISH Posted August 4, 1999 Share Posted August 4, 1999 Sounds like the lawyers think a COBRA audit is a good idea. From some of the other messages I am reading, it sounds like there are a lot of confused benefits professionals administering COBRA on a daily basis. Are there any HR and/or benefits professionals who are as worried about this as I am? Any who plan to hire an auditor? I'm just benefishin'. Link to comment Share on other sites More sharing options...
Guest ScottN Posted August 5, 1999 Share Posted August 5, 1999 I advise a lot of clients to use an independent Cobra TPA. In many cases it is an inexpensive method of transferring a large liability to another party. I also use a manual from the Employee Benefits Institute of America titled "Cobra: The Developing Law". Web address: www.ebia.com. The manual includes sample documents, notification letters, etc. It is very comprehensive. Link to comment Share on other sites More sharing options...
Kirk Maldonado Posted August 5, 1999 Share Posted August 5, 1999 I haven't seen the EBIA treatise, but the "Mandated Health Benefits - The COBRA Guide" published by Thompson Publishing Group is the best treatise on any employee benefit topic I've ever seen. It's unique advantage is that it is equally good for the novice or an extremely experience practitioner. Kirk Maldonado Link to comment Share on other sites More sharing options...
Guest Regina Lightner Posted August 5, 1999 Share Posted August 5, 1999 I have enjoyed reading the responses to my original message. One last appeal---I don't want to hire a TPA for COBRA because we don't perceive that there is enough value in their service. Interestingly enough, Kirk, we do subscribe to Thompson's "Mandated Health Benefits-The COBRA Guide". Their advice to seek a periodic, independent COBRA audit was what convinced me to begin this search. It looks like a lawyer or this cobraaudit.com are my best options? Link to comment Share on other sites More sharing options...
Guest Jack Hill Posted August 9, 1999 Share Posted August 9, 1999 I have used an independent audit firm for both COBRA and claims and operational reviews. The name of the firm is Health Benefit Consulting Inc. and the President of the firms name is Kathy DelFavero. You can reach her at 630-357-1753. Wish you the best. ------------------ Jack Hill Link to comment Share on other sites More sharing options...
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