5 Things You Need to Know About COBRA Open Enrollment
October 24, 2019
Open enrollment isn’t just for your active employees. Your COBRA members also go through an open enrollment period each year. We’ve compiled five things you’ll want to know about COBRA open enrollment.
Health plans must be the same as active population’s options
COBRA requires many employers to give their workers and their families the opportunity to continue their group health benefits through their group health plan once they experience a qualifying event. If you’re required to offer COBRA to your qualified beneficiaries, you must offer the same health plans that are available to your active employees (as long as those plans are COBRA-eligible plans).
Communication is primarily off-site
Open enrollment for your active employees may include a number of tactics, including benefits fairs and Q&As. However, your COBRA members are not on site, so you may need to adjust your open enrollment communication approach. That’s why many businesses turn to a third-party administrator to manage their COBRA member contact information and actively communicate with them during open enrollment.
Active versus passive enrollment
There are two types of open enrollment:
- Active, which requires your employees or members to choose their enrollments each year.
- Passive, which automatically re-enrolls them in their previous year’s enrollments if they take no action.
Because your COBRA members aren’t on-site, we recommend you offer a passive open enrollment.
There are alternatives to COBRA
COBRA comes at a cost. And your qualified beneficiaries have to pay the entire cost of their coverage. However, you and your qualified beneficiaries both save when they shop for alternative coverage that’s customizable and more affordable. We offer Discovery Marketplace, which can help you save when you have fewer COBRA elections (because that can mean lower premiums). And a single COBRA member on Discovery Marketplace saves, on average, $150 per month, while the average family saves $675 per month.
Online renewal simplifies experience for members
An online experience can be a big difference maker for your business when you’re holding open enrollment for off-site COBRA members. It gives them a more modern, easier-to-follow experience that reduces paperwork, manual processes and member questions. We’re excited to let you know that we rolled out updates to the participant online experience that give clients the option of allowing their COBRA members to complete their open enrollment through their online accounts.
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