Benefits Provider Profile Special Advertising Section
As a human resources professional, you know COBRA is a vital safety net for individuals and families – and a required one at that. Since 1986, COBRA has been allowing those
who lose healthcare coverage after experiencing a qualifying event
to continue their employer-sponsored health coverage. On average,
about three million individuals and families use COBRA each year1.
Employers who have 20 or more employees are required by law
to offer COBRA coverage2. Since COBRA qualified beneficiaries
often have higher than average medical costs, this can increase
premiums for your company. And COBRA costs can also be
expensive for qualified beneficiaries, making it an option that’s
harder to afford. That’s why it’s important to provide COBRA
alternatives, which save you and your members money, while also
providing other benefits.
Offering COBRA alternatives gives both you and your qualified
beneficiaries an opportunity to save money on the continuation of
coverage. That’s because:
• When qualified beneficiaries choose a COBRA alternative
from a marketplace instead of COBRA, you reduce the number of
members electing COBRA. This reduces plan use and potentially
reduces your costs.
• Qualified beneficiaries who elect COBRA may be required
to pay up to 100 percent of their health insurance premium,
plus an additional two percent for administrative costs. Because
of those expenses, qualified beneficiaries may be able to find
cheaper options through a marketplace offered by your COBRA
With COBRA alternatives, your qualified beneficiaries can find
affordable and customizable coverage that’s tailored to their needs.
Rather than electing the entire health coverage package that they
received as an employee, the marketplace allows them to select
coverage based on their individual needs. Plus, this alternative
coverage can continue even when the maximum-allowed period of
coverage for COBRA has expired, giving them more peace of mind
and greater flexibility.
You experience reduced risk when your qualified beneficiaries
choose a COBRA alternative for healthcare coverage rather
than electing COBRA. That’s because the risk associated with
beneficiaries’ claims is taken on by the provider they choose – not
Discovery Benefits offers Discovery Marketplace so employers
like you can offer an affordable alternative to COBRA that serves
as a great option for you and your qualified beneficiaries. In fact,
qualified beneficiaries registered for an account in Discovery
Marketplace are nearly four times more likely to choose coverage
from Discovery Marketplace than those offered COBRA. The
best part: When they do choose coverage through Discovery
Marketplace, it comes at no extra cost to you – making it a win for
you and your qualified beneficiaries.
DISCOVER POTENTIAL SAVINGS BY
OFFERING COBRA ALTERNATIVES
Sources: 1: https://www.hsdl.org/?view&did=741235. 2: https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/cobra-continuation-health-coverage-compliance