Defining COBRA Parameters

This procedure allows you to define the defaults for tracking and invoicing COBRA participants.

To define COBRA parameters

  1. Access COBRA Parameters (BN00.2).
  2. Select the Company.
  3. If you want the application to assign participant numbers, define the participant numbering information. Use the following guidelines to enter field values:
    Note: If you use Employee Change Benefit Update (BN100) to automatically create COBRA participant records, you must select Yes in the Autonumbering field.
    Auto numbering

    Select Yes if you want the application to assign numbers to COBRA participants when they are added.

    Beginning Number

    If you selected Yes in the Autonumbering field, type the number you want to start numbering COBRA participants with. After COBRA participant records have been created, the last number used displays in this field.

  4. Define the Notification days. Use the following guidelines to enter field values:
    Employee

    Type 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

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

    Election

    Type 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. Define your COBRA billing information. Use the following guidelines to enter field values:
    Premium percent

    Type the percent of the total premium to charge COBRA participants. This value must be at least 100 percent. For example, if you want to increase an employee's premium by 2% to cover COBRA administration costs, you type 102.

    Excess premium account

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

    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

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

    Initial Grace Period

    Type 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 want sent to participants or retirees who have delinquent payments. The standard letter is defined in BN05 (Standard Letter).

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

  6. Select the Add form function.

Related Reports and Inquiries

To Use
List the COBRA participants who have not been notified within the specified days COBRA Notification Report (BN170)
Determine which participants did not pay their premiums in the grace period Outstanding Invoice Listing (BN175)