COBRA Administration

If you employ more than 20 individuals during 50 percent of business days, then you're required to offer them COBRA coverage after a qualifying event that causes a loss of health coverage or change in the level of coverage provided. The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to continue the benefits provided by your group health plan for limited periods of time.

If you're an employer in Texas with less than 20 employees, the state requires you to offer something similar to COBRA that's often called "State Continuation." If you have more than 20 employees, Texas requires you to offer an additional extension of coverage after a former beneficiary’s COBRA coverage ends.

Because COBRA rules change frequently and regulations are time-sensitive, you face challenging administrative issues and noncompliance penalties. Outsourcing your administration to Higginbotham’s certified COBRA Administrators helps you:

  • Reduce utilization and claims—we monitor compliance to ensure that only eligible participants remain on your plan.
  • Reduce administrative costs—we reduce the amount of time and resources you spend on COBRA related tasks by deploying a web-based system that produces and sends required COBRA notifications, bills, collects and distributes premium payments, reports eligibility and generates monthly premium statements.
  • Maximizes compliance and minimizes liability—we accept responsibility for all work performed on your behalf and indemnify you for all direct, monetary and compensatory damages if we fail to provide the agreed compliance services.