Payment Invoices vs. Payment Coupons
Some benefits administrators may choose to provide payment coupon books to their COBRA participants, but is this necessarily the best approach for your clients? Experience with offering both payment coupons and monthly invoices, and when the two payment notification methods are compared, the advantages of offering monthly invoices to our COBRA participants far outweigh a book of coupons. Check out these reasons why.
Payment Prompts
Our monthly COBRA payment invoices are proactive payment reminders. A book of monthly coupons can easily be tossed aside and forgotten, especially at a time that may be difficult for some COBRA participants because of their qualifying event (e.g., death of a spouse or loss of employment). However, sending our COBRA invoices directly to participants each month encourages timely premium payments because of this regular reminder.
Up-to-date Payment Details
As experienced in the past two years, COBRA continuation assistance from the American Recovery and Reinvestment Act of 2009 (ARRA) affected many of our COBRA participants’ monthly premiums. The premium reductions associated with this subsidy were easily incorporated into each qualifying individual’s monthly invoice. In comparison to out-of-date preprinted coupon books, you will find the ability to quickly change our invoices extremely effective as COBRA continuation assistance extensions were mandated.
In addition, our dynamic invoices allow you to carry forward past-due amounts from a previous coverage period, such as an insufficient payment that falls within acceptable COBRA payment timeframes. Advance payments are also reflected in each participant’s actual monthly balance.
Staying in Touch
Invoices also allow you to stay in touch with COBRA participants each month and gather pertinent details. For example, our invoices ask participants about other health coverage opportunities from another group health plan offered through a new employer, their spouse’s employer, or their ability to qualify for Medicare. This thorough outreach ensures that our clients have been diligently reminding their COBRA populations of the financial responsibility for COBRA premiums.
Record Retention
Images and electronically retains all COBRA-related issued invoices and notices. When necessary, CONEXIS provides copies of many types of COBRA correspondence. In the event of a dispute or litigation related to COBRA, these files are available to our clients.
Some benefits administrators may choose to provide payment coupon books to their COBRA participants, but is this necessarily the best approach for your clients? Experience with offering both payment coupons and monthly invoices, and when the two payment notification methods are compared, the advantages of offering monthly invoices to our COBRA participants far outweigh a book of coupons. Check out these reasons why.
Payment Prompts
Our monthly COBRA payment invoices are proactive payment reminders. A book of monthly coupons can easily be tossed aside and forgotten, especially at a time that may be difficult for some COBRA participants because of their qualifying event (e.g., death of a spouse or loss of employment). However, sending our COBRA invoices directly to participants each month encourages timely premium payments because of this regular reminder.
Up-to-date Payment Details
As experienced in the past two years, COBRA continuation assistance from the American Recovery and Reinvestment Act of 2009 (ARRA) affected many of our COBRA participants’ monthly premiums. The premium reductions associated with this subsidy were easily incorporated into each qualifying individual’s monthly invoice. In comparison to out-of-date preprinted coupon books, you will find the ability to quickly change our invoices extremely effective as COBRA continuation assistance extensions were mandated.
In addition, our dynamic invoices allow you to carry forward past-due amounts from a previous coverage period, such as an insufficient payment that falls within acceptable COBRA payment timeframes. Advance payments are also reflected in each participant’s actual monthly balance.
Staying in Touch
Invoices also allow you to stay in touch with COBRA participants each month and gather pertinent details. For example, our invoices ask participants about other health coverage opportunities from another group health plan offered through a new employer, their spouse’s employer, or their ability to qualify for Medicare. This thorough outreach ensures that our clients have been diligently reminding their COBRA populations of the financial responsibility for COBRA premiums.
Record Retention
Images and electronically retains all COBRA-related issued invoices and notices. When necessary, CONEXIS provides copies of many types of COBRA correspondence. In the event of a dispute or litigation related to COBRA, these files are available to our clients.
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