1. Benefits Implementation Guide
  2. Calculating COBRA Plan Premium Amounts for Benefit Plans without Options

Calculating COBRA Plan Premium Amounts for Benefit Plans without Options

Set up COBRA plan premium amounts in the Plan Master program (P08320). The system uses the premium amounts that you set up on the Calc./Eligibility tab of the Plan Master form to calculate the COBRA plan premium that appears in the Coverage Review program (P08922) and the COBRA Coverage Selection program (P08921). The system calculates COBRA plan premiums for benefit plans without options in one of these three ways:

  1. If a DBA appears in the EE Payroll Deduction (employee payroll deduction) field, place the cursor in this field and select Plan Rates from the Form menu.

    On the Plan Master Rates Window form, complete the Type field with a C (COBRA), and then complete the Amount and Date fields in the detail area.

    Important:

    The amount field represents the COBRA rate for the selected plan multiplied by the pay frequency for the selected individual. It also includes the administration fee.

    When creating COBRA coverage records, if the system finds a COBRA plan premium amount for the EE Payroll Deduction field, it includes that amount, and only that amount, in the calculation. If other COBRA amounts are set up for the remaining DBA fields on the Plan Master form, the system omits these amounts.

  2. If the system does not find a COBRA amount for the EE Payroll Deduction field as described previously, the system searches for COBRA amounts on the other DBAs.

    You can also set up COBRA amounts for the ER Paid Benefit (employer paid benefit), EE Flex Cost, and ER Flex Credits fields. Set up COBRA amounts for these fields in the same manner that you set up a COBRA amount for the EE Payroll Deduction field.

    Note: The COBRA amounts for the ER Paid Benefit, EE Flex Cost, and EE Flex Credits fields are summed. If no COBRA amount has been set up for a particular field, the system does not use that field in the calculation.

  3. If no valid COBRA amounts exist for the EE Payroll Deduction, ER Paid Benefit, EE Flex Cost, and ER Flex Credits fields, the system sums the regular benefit DBA calculations.