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Compliance
There are a variety of compliance responsibilities for employers who sponsor group benefit programs.  A proactive approach is the best method for ensuring ongoing compliance and protecting the plan sponsor from penalties and other associated liabilities.  Below are some compliance categories and recommended resources.

COBRA:
Below is a list of COBRA responsibilities for employers with 20 or more employees.  COBRA compliance is best achieved by using a professional administrator such as Ceridian COBRA Services.  Professional COBRA administration is expected to include the following services and fees.
  • Provide Initial Notice to employees of COBRA Rights
  • A COBRA premium subsidy may be available for those who lose their coverage due to foreign trade
  • Provide COBRA Qualified Beneficiary Letter for employees who become ineligible for the medical plan 
  • Manage COBRA Eligibility with Carriers
  • Bill and Collect COBRA Premium
  • Track COBRA Time Limits
  • Provide All Other Required COBRA Letters and Notifications
  • Provide Detailed Monthly Employer COBRA Report
  • Customer Service for COBRA Continuant
  • Compliance Support
  • On-Line Web Access Portal for QBs and Admin (No Additional Charge)
  • Recommended administrator is Allegiance Benefit Plan Management or Ceridian Cobra Services
  • Typical fees
    • Setup Fee: varies 
    • COBRA Monthly Fee for empoyers from 20-30 employees is approximately $50. 
State Continuation:
This is the continuation option required for groups with fewer than 20 employees.  When a covered employee loses their eligibility for employer paid benefits, the employer must offer the employee continued coverage for up to 9 months for Oregon.  The employee pays the same coverage and has the same benefits as actively working emloyees on the plan.  This continuation option is administered by the group.  We can help with notification and enrollment.

Pre-tax:
When employees contribute on a pre-tax basis from their pay checks for qualified beneits such as health insurance, compliance is required.  Compliance for pre-tax activity includes; non-discrimination testing, docuemntation retention including plan documents and summary plan description, employee enrollment forms and annual non-discrimination testing.

Cafeteria Plan:
This is much like the pre-tax premium contributions, except employees and employers can contribute money to a flexible spending account on a pre-tax basis to spend on a variety of qualified benefits.  The deposits are taken from pre-tax payroll deductions and spent on qualified benefits with no tax liability.  Compliance for this activity is the same as the pre-tax activity above.  There will be variations in the documents.

Health Reimbursement Account:
The Health Reimbursement Account allows employers to help covered employees with certain expenses outlined in the benefit.  In a typical HRA, employers may contribute 50% of the employee deductible, office co-pays, etc.  Employee benefits received throught HRA are not taxible.  Typical set up fee is $250 with a minimum monthly charge of $50 or $4.50 per employee per month.