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Process documentation Administration of COBRA Locate the document in its SAP Library structure

Purpose

This process describes the steps involved in administrating COBRA. The process is recurring, and most of the tasks are performed on a regular basis. Depending on whether you outsource any administrative tasks, you may not perform all of the steps described within your organization.

Prerequisites

You have made all the required Customizing settings for COBRA administration in the Benefits Administration Implementation Guide under COBRA.

Process Flow

  1. In order to determine which employees and/or dependents are eligible for coverage continuation, you check for COBRA events regularly by running a COBRA Event Collection.

    2. COBRA events are indicated by changes in HR master data. For more information on the changes associated with events, see Criteria for Qualifying Events. The system collects events and stores them temporarily for use in the next step.

  2. You print COBRA letters and mail them to the qualified beneficiaries.

The event data collected in step 1 is automatically used to generate letters.

When you print COBRA letters, participation in health plans is automatically terminated for the qualified beneficiaries, and new COBRA-Qualified Beneficiary records (infotype 0211) are automatically created.
  1. You periodically monitor the COBRA election period to detect any qualified beneficiaries who fail to communicate their decision regarding COBRA participation on time.

    2. For these qualified beneficiaries, you record a COBRA waiver.

  2. When qualified beneficiaries communicate their decision regarding COBRA coverage, you record this in the system. You can do either of the following:
  1. You print and mail confirmation forms for newly enrolled beneficiaries.
  2. You administer payments for continued health plan coverage.

Since payments are not processed as payroll deductions, you need to administer them as follows:
    1. You print COBRA invoices and send them to beneficiaries.
    2. You register receipt of payments.
    3. You monitor payments to detect any overdue amounts, as a result of which you can terminate a beneficiary's participation in all COBRA plans before the end of the coverage extension period.

You can perform the following optional activities periodically:

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