COBRA Termination and Reinstatement Employer Responsibilities

Key Takeaway

Employers and partners have certain responsibilities when it comes to COBRA services.

  • It is the employer’s responsibility to notify all carriers of the initial termination.
  • All qualifying events must be reported to Alerus via website at alerus.com, email to cobra@alerus.com, or fax to 866.808.7821. The event notification form must be submitted within 14 days of the specific qualifying event or after the loss of coverage.
  • Audit carrier premium billings each month to ensure that all members have been added to, changed within, or removed from your insurance carrier premium billing within 60 days. Alerus is not responsible for premium billing discrepancies beyond 60 days after the premium billing date, as most carriers will not retro back changes more than 60 days for adjustments.
  • Confirm whether your current carrier (or your former carrier if you changed carriers during renewal) requires you to complete additional paperwork regarding COBRA/MN Life continuation.
  • New rates must be received in our office at least 30 days prior to the renewal date to assure timely implementation. Alerus will not back-bill qualified beneficiaries for premium rate increases if rates are received after the renewal date. Example: Rates received on September 10 for a renewal date of September 1 will be effective October 1. Premium deficiencies due to late rate notices are the responsibility of the employer.
  • There will be a charge of $75 per hour for correcting and responding to erroneous information, including:
    • Open enrollment reinstatements to correct incorrect terminations included in electronic files received.
    • Carrier changes are requested after plan rate changes have been processed.
    • Late notification of rate or carrier changes, or urgent updates required for reinstatements.
  • Alerus will reinstate COBRA continuants on coverage when all forms and payments have been received.
  • Remittance to employers of collected premiums will follow within five business days of the previous month’s closing.

If there are any questions or concerns regarding the termination and reinstatement processes, please contact your Alerus representative immediately.