Defining COBRA parameters

You can define the defaults for tracking and invoicing COBRA participants.

  1. Access COBRA Parameters (BN00.2).
  2. Select the Company.
  3. If you assign participant numbers, define the participant numbering information. Specify this information:
    Note: If you use Employee Change Benefit Update (BN100) to automatically create COBRA participant records, you must select Y - Yes in the Automatic numbering field.
    Automatic numbering

    Select Y - Yes if you assign numbers to COBRA participants when they are added.

    Beginning Number

    If you selected Y - Yes in the Automatic numbering field, specify the number you intend to start numbering COBRA participants with. After COBRA participant records are created, the last number used displays in this field.

  4. In the Notification Days section, specify this information:
    Employee

    Specify the number of days a covered employee or dependent has to notify the employer of a qualifying event. If the employer is not notified in this number of days, the employee or dependent loses the right to extend coverage.

    Company

    Specify the number of days after a qualifying event that the company has to notify employees and dependent of their right to extend coverage.

    Election

    Specify the number of days employees and dependents have to notify the company of their election of coverage. If the employer is not notified in this number of days, the employee or dependent loses the right to extend coverage.

    Note: If the difference between the Occurrence Date and Company Notified fields on COBRA Participant (BN70.1) is greater than the number of days in the Employee field on COBRA Parameters (BN00.2), the COBRA participant's Termination Date becomes the same date as the COBRA participant's occurrence date. The participant forfeits the right to extend coverage.
  5. In COBRA Premium Billing section, specify this information:
    Premium percent

    Specify the percent of the total premium to charge COBRA participants. You must set this value to at least 100 percent. For example, if you increase an employee's premium by 2% to cover COBRA administration costs, specify 102.

    Excess premium account

    If the premium percent is greater than 100 because of the surcharge for administration costs, select the GL account where to accumulate the surcharge.

    If you leave the account field blank, the surcharge accumulates in the accrual account defined on each plan.

    Billing Period

    Leave this field blank for the initial set up. This field is automatically populated and updated as you complete the invoicing process each month.

    Due Days

    Specify the number of days from an invoice date that COBRA premiums are due.

    Initial Grace Period

    Specify the number of days from the due date of the first invoice that COBRA participants have to pay their first premium.

    Note:  Outstanding Invoice Listing (BN175) uses this value to determine which invoices are outstanding.
    Dilinquent Letter:

    Select the standard letter that you sent to participants or retirees who have delinquent payments. The standard letter is defined in Standard Letter (BN05.1).

    If you designate a standard letter code as the delinquent letter, you can run COBRA Letter Print (BN171) to create delinquent payment letters for participants or retirees.

  6. Click Add.

Related reports and inquiries

This table shows the related reports and inquiries:

Function Form
List the COBRA participants who have not received notification within the specified days. COBRA Notification Report (BN170)
Determine which participants did not pay their premiums in the grace period Outstanding Invoice Listing (BN175)