Our “bona fide” options can be implemented separately or in combination.
Our “Accounting Integration” service makes sure the cost savings we project are always realized.
Contractors Prevailing Wage
Insurance Services
1620 Alpine Blvd. Suite #208 Alpine, California 91901
800-935-0041
619-445-3472 fax E-mail Us
A provision of The Congressional Omnibus Budget Reconciliation Act (COBRA) of 1985 created an option for employees terminating from an employer’s health plan to maintain the coverage in force for several varying periods of time (usually 18 months.)
This well intended legislation created a most onerous responsibility for employers. The penalties for its violation are severe and relatively easy to trigger. Any person who has done COBRA administration well understands how burdensome this requirement can be.
When a contractor chooses to participate in an approved ERISA Contractor Medical Insurance Trust, the responsibilities for COBRA compliance are transferred to the Trust. The reason is very simple. The Trust is the contract holder with the insurance carrier, not the employer. The responsibility for COBRA compliance rests with the contract holder. This service is provided without additional charge and requires the employer merely to notify the Trust when an employee terminates.
For many employers, relief of COBRA administration is a major benefit to joining a Trust:
Elimination of monthly COBRA administration paperwork.
Elimination of monthly third party billing of terminated employees.
Elimination of ALL COBRA related litigation, should an employee choose to sue over a claim dispute.
