50% disability premium increase - Question for COBRA TPA's

[Guest Jeremy_Davis]

Hello,

I'm not sure if this is in the appropriate forum, if not please either move the thread or point me to the place to go.

What I am trying to find out is what TPA's are doing with the 50% administrative fees that are applied when a COBRA participant elects to continue for disability. Does the TPA usually keep those 50% in fees, or do they keep the 2% and turn over the remaining 48% to the employer?

Thanks so much for your help!

[Guest DRIVEN]

The money should be returned to the employer to offset any costs that the carrier might impose due to having a disabled individual on their plan.

An administrator is entitled to their 2%, but anything after that is the employer's. Why would an employer choose to charge 150% just to let their TPA keep it?