COBRA is the abbreviation for Consolidated Omnibus Budget Reconciliation Act of 1985. This act was passed to control the growing rate of the Americans who were not insured. The COBRA law was enforced by the joint effort of the Department of Health and Human Services, the Internal Revenue Service and the U.S. Department of Labor. On violation of this law, there are several penalties which can be imposed.
COBRA Outsourcing can be defined as a process which makes scope for the business to perform the job processes in a productive manner. Besides, it allows the business to be performed in a cost-effective way. COBRA administration is a legally critical process and its outsourcing only assures you that your business is in compliance with the law and has proper cost savings for having an in-house COBRA Administration.
There are several companies which offer COBRA outsourcing services. These usually offer TPAs (Third Party Administrators) and guarantee COBRA compliance to their clients. The COBRA TPA is known to handle a range of tasks, right from notifications and billings to collections. Outsourcing a business process actually means transferring responsibility besides accountability for more productive results. These outsourcing companies offering COBRA compliance are actually meant to improve your administration process and safeguard your business.
The software applications that these companies provide you eliminate the laborious manual works and paper based processes. Most of the providers offer web-based access to the various applications and not only does that make it convenient but also the fully automatic administrative systems ease the tedious tasks and simply the complex processes. This way the information and reports become more easily accessible. This is how an outsourced service provider can contribute in improving your business process.
A good outsourcer ensures the following to a company:
· Better Productivity: By pulling out the time consuming and confusing manual tasks, the COBRA compliance is now better handled with faster and more accurate software.
· Advanced Technology: The advanced software applications provided by these outsourcers rules out the headache of up gradation and installation planning.
· Better Implementation: There should minimal installation and infrastructure expenditure and at the shortest time.
· Affordable Costs: Advanced COBRA compliance system without having to make a major capital investment, which also leaves you the option of monthly payments.