COBRA Administration
650,000 (or so) US employers today are required to comply with COBRA, and our numbers suggest that about 72% of them outsource their compliance to one of roughly 6,000 companies which claim to perform fully-outsourced third-party COBRA administration. That’s a seriously fragmented market, but once you’ve run a COBRA administration business you being to understand why. Using the legacy software systems on the market and traditional manual processes, COBRA administration is really hard to scale. So, it becomes a sideline value-add offering instead of a core business for most administrators and those health plans who administer COBRA in-house.
We ran our prior business, COBRA Outsourcing Company, from 1995 to 2006. We performed COBRA compliance administration and Retiree Health Insurance Billing for 4,000 employer clients, and we ran the business at 42% net, after tax, profitability. How? We built exquisite world class technology and domain dominating processes. We empowered our clients and members with self-service, fully-transparent web portals. We outsourced print/mail to make it 100% hands-off, and we invested heavily to automate and optimize postmark date aware payment processing.
Today, in Benaissance, COBRApoint, and our Integrated Services, we provide all of this hard won expertise to you. Any COBRA administrator today can run at limitless scale and maximum profitability in partnership with Benaissance. Just ask our customers – you won’t have to look hard to find one these days.
And…There are no large upfront fees for our SaaS technology or Integrated Services. In most cases where our Payment Services are provided in concert with COBRApoint, we simply earn a percentage of premium for each payment we process.
