This self-service program will empower direct buyers (employer groups) and resellers (existing and new) to setup their own accounts in a matter of minutes. The account setup initiates BAS/COBRA Contol Services COBRA and/or FSA administration services, in a matter of minutes.

This new online, self-service account setup program offers clients and resellers numerous benefits for clients and resellers:

• Paperless account setup
• Instant account setup, COBRA & FSA admin can begin right away
• Paperless service contracting
• Reseller pay and account data edit assignment controls
• Initiates administrator training automatically
• Free administrator training within 24-business hours of finalizing setup

Buy Online: Access Online Account Setup

Phase 1: Establish your COBRA-eligible benefit plans’ annual rate renewal dates, and

Phase 2: Update your COBRA-eligible benefit plans’ premium rates

On January 27, 2010, we sent a technical bulletin (get Rate Renewal Date Process Technical Bulletin) to all of our COBRA administration clients explaining these processes.

On January 28, 2010, we sent the Phase 1 email to all of our COBRA administration clients.

As of the end of the day on January 28th, more that 50% of all our COBRA administration clients has successfully reviewed and updated/confirmed their benefit plan rate renewal rates!!!!

We are preparing to launch two valuable online services for your use including: (1) an Online Broker/Resellers Portal and (2) an Online Account Setup Program:

The Broker/Reseller Portal (RP) will provide you with 24/7 access to important information about your clients. Key features will include quick data views, rate renewal reminders and reporting capabilities. For Resellers who manage their clients’ data, you will be provided a single-sign on User Id and Password for all of your accounts.

The Online Account Setup (OAS) will provide you with 24/7 access to setting up an account for COBRA and FSA/HRA services along with electronic contracting. Thus, vastly improving and speeding up the process of setting up new accounts (i.e., eliminating our setup binder process containing paper forms and contracts). In fact, you will and your staff will be able to setup and contract new COBRA, FSA and HRA accounts in minutes!

Setting Up Your Account and Users

To prepare your organization for use of the RP and OAS, we need some information completed and returned to us, so we may update our systems. Once we receive this information, we will send email invitations to each of your users you identify on the attached form that will explain how they can go online confirm their personal information and access the RP and OAS.

User Types

There are four types of RP and OAS users. Please refer to the attached “User Types” defined on the attached Reseller User Identification Form enclosed with this letter.

Effective Dates

RP and OAS are in production and ready for your use. Beginning July 1, 2009, all account submissions for COBRA and FSA/HRAs will need to occur through OAS or be subject to an additional $350 processing fee.

Next Steps – Confirming Personal Data & Obtaining User IDs & Password

Once you return the attached form listing all of your authorized users, we will send each of your users an email invitation to link through to our Reseller Setup program that will present each user their personal data and allow them to make necessary changes.

Once they complete their personal data review, instantly, MyEnroll.com will send them two emails; one with their User IDs and one with their Passwords. These emails will also instruct them how to use their User IDs and Passwords to access the Reseller Portal on MyEnroll.com.

Next Steps – Training

We are readily available to provide you with a web-based demonstration of both RP and OAS. If you would like to arrange a personal training session, please send us an email to Training@BASusa.com or call our trainer Ro Susko at 1 (610) 992-2560.

Questions

If you have any questions about this information, please contact Robin Block at (610) 992-2516 or RBlock@BASusa.com.

Seminar Date: 3.24.2009 arra-presentation-2

Since this is one of the most frequently asked questions to our call center, we thought it was worth highlighting it with this blog entry as follows:

It appears that the revised Form 941 provides in line 15 a place to identify your credit amount and note whether you want to apply the credit to the next return or to have the IRS send you a refund.

Specifically, Form 941 Instructions state on page 6, Item 15 Overpayment: “If line 13 is more than line 10, write the difference in line 15. Never make an entry in both lines 14 and 15.

If line 15 is under $1, we will send a refund or apply it to your next return only if you ask us in writing to do so.”

The information contained herein is for informational purposes only and is not intended as legal or tax advice, nor is it intended to advise you of your obligations under ERISA, COBRA, HIPAA or the American Recovery and Reinvestment Act of 2009.

The American Recovery and Reinvestment Act of 2009 (a.k.a. The Economic Stimulus Bill), hereafter referred to as “ARRA,” makes substantial, but temporary, changes to the rules governing the continuation of health coverage under COBRA along with a number of other modifications affecting welfare benefit plans.

Benefit Allocation Systems, Inc, (BAS) and Cobra Control Services, LLC (CCS) are preparing to provide you with the tools to necessary for your compliance with ARRA as it pertains to the changes under COBRA. As part of our COBRA services for the fees outlined below, BAS and CCS will provide the necessary notification, billing, remittance, and reporting services that are required under the new law.

The attached document summarizes ARRA requirements with respect to COBRA administration and the services BAS/CCS will provide your group.

Your Responsibilities

While evaluating our clients’ COBRA data with respect to ARRA, we have discovered many instances where administrators or their designees did not discern between involuntary and voluntary separation from service when assigning an employee’s qualifying event.

We believe this may have occurred because, prior to ARRA, choosing either the voluntary or involuntary qualifying event did not affect the offer or duration of COBRA coverage. Since the key determinant of a qualified beneficiary’s eligibility to be an Assistance Eligible Individual is the assigned qualifying event, it is important that the employer or its designee review each employee terminated on or after September 1, 2008 (and before December 31, 2009), and modify the assigned qualifying event, as necessary.

BAS/CCS is providing you with a new online program that lists each employee who was/is eligible for COBRA coverage on or after September 31, 2008 (and before December 31, 2009) to enable you to modify any assigned qualifying event, so you can accurately identify involuntary versus voluntarily separated employees, and we can use these designations to mail the appropriate notices to each set of former employees and their qualified beneficiaries.

To access the Qualifying Event Verification program online, log on to your administrative account from www.CobraControl.com or www.MyEnroll.com and under the COBRA menu select “Qual. Event Verification.”

If you have any questions about this information, please contact us.

Sincerely,
Benefit Allocation Systems, Inc.
Cobra Control Services, LLC
(888) 887-6187
Info@CobraControl.com

The information contained herein is for informational purposes only and is not intended as legal advice, nor is it intended to advise you of your obligations under ERISA, COBRA, HIPAA or the American Recovery and Reinvestment Act of 2009.

The ARRA makes substantial, but temporary, changes to the rules governing the continuation of health coverage under COBRA and a number of other modifications affecting welfare benefit plans. BAS/CCS is working quickly to incorporate these changes into its processing, notification, billing, remittance, and reporting services.

Benefit Allocation Systems, Inc, (BAS) and Cobra Control Services, LLC (CCS) have begun to prepare to assist you with new notice, billing, and reporting requirements.

The ARRA aims to make health coverage more affordable for employees who lose their jobs by lowering the cost of COBRA coverage for many individuals. Any qualifying individual whose employment is involuntarily terminated between September 1, 2008, and December 31, 2009, and who is eligible for continuation coverage under COBRA because of the termination will be able to continue health coverage at only 35 percent of the ordinary COBRA premium for up to nine months.

Employers (and, in certain cases, insurers) will subsidize the remaining 65 percent, but have the right to recover the subsidy amount from the federal government through a credit on their payroll tax deposits.

Affected Plans. The new subsidy rules apply to plans that are subject to COBRA, certain federal government plans, and plans that are exempt from COBRA but subject to comparable requirements for health coverage continuation under state law. For convenience, this bulletin refers to the continuation of coverage under all of these plans as COBRA coverage. Health flexible spending arrangements provided through a cafeteria plan are exempt from the requirements.

Discount Period. The discount period begins with the first month of coverage after the ARRA is signed into law and lasts up to nine months, but may be shorter. The ARRA does not extend the maximum period of COBRA coverage beyond its ordinary expiration date. The discount will end when the COBRA coverage itself ends. In addition, the discount will end when an individual becomes eligible for coverage under Medicare or another group health plan (other than a plan that offers certain types of limited benefits, such as a dental plan or health flexible spending account). The ARRA applies penalties against individuals who fail to provide appropriate notice when they become eligible for other coverage.

Second Chance to Elect. Those who are eligible for the discount, but who did not previously elect COBRA coverage must be afforded a period of at least 60 days to elect continuation coverage. The coverage will be effective as of the first day of the month after the ARRA is signed into law (March 1). The maximum period for coverage will be measured from when it would have begun if COBRA had been elected when initially offered.

Notice Requirements. Plan administrators must modify or supplement the COBRA notices they provide when a qualifying event occurs. The notice must include specified information regarding the opportunity for a premium discount. Plan administrators must also alert those who have already elected COBRA and those who are eligible for the discount but have not elected COBRA, of their rights under the ARRA. This notice must be provided within 60 days after the ARRA is signed. The government is required to issue model notices within 30 days of that signature.

This posting is brought to you by Benefit Allocation Systems, Inc. and COBRA Control Services, LLC. The information contained herein is for informational purposes only and is not intended as legal advice, nor is it intended to advise you of your obligations under the American Recovery and Reinvestment Act of 2009.

Significant changes are coming to COBRA administration. Currently, the House H.R. 598 and Senate S. 29 are considering proposals that would subsidize coverage and expand the amount of coverage available for older and long-tenured employees. These changes will likely require more complex COBRA administration and updates to initial rights notices, qualifying event notices, and premium collection processes.

Once the COBRA legislation is finalized, Cobra Control Services, LLC will offer free webinars on the COBRA changes and offer detailed guidance for employers.

Highlights of the legislation affecting COBRA include:

 ·         Premium assistance (65 percent of the COBRA premium) for up to 12 months for those who elected COBRA from September 1, 2008, through December 31, 2009. This would apply only to involuntary employment terminations (for reasons other than gross misconduct). The employer would pay this subsidy to the carrier (for fully insured plans) or absorb the subsidy (for self-funded plans) and receive credit for it through reduced payroll taxes.

·         A new 60-day election period would exist for those who did not elect coverage during that time.

·         New notice requirements would take effect.

·         Expanded COBRA coverage would be in place for employment termination or reduction of hours of employment qualifying events for employees who are at least age 55 or had 10 or more years of service. This coverage could continue beyond 18 months until any other termination reason occurs (e.g., Medicare entitlement, failure to pay).

These provisions could significantly increase the percentage of beneficiaries opting for coverage

Cobra Control Services, LLC has begun preparing for these changes on behalf of its COBRA administration clients. We expect the bill could reach President Obama’s desk within the next 15 days.

We will keep you apprised as this legislation’s progresses. For more information, you may contact us at info@cobracontrol.com or 888-887-6187.