DataPath examines the effects of COVID-19 on COBRA and upcoming ERISA plan deadlines
LITTLE ROCK, ARKANSAS (February 16, 2021) – DataPath, Inc., a leading developer of technology solutions for employee benefits administration, has published a whitepaper titled, “COVID-19 and COBRA Continuation Insurance: Where Do We Stand?” The paper takes a deeper look at the effect of the COVID-19 healthcare crisis on the economy – specifically, its impact on the COBRA insurance market – and how an upcoming deadline could wreak havoc for administrators.
In March 2020, the Federal response to the COVID healthcare crisis included a one year “Outbreak Period,” defined by a joint final notice issued by the Internal Revenue Service and Department of Labor as beginning March 1, 2020 and ending February 28, 2021. With the end looming, third party administrators, employers, and insurance carriers could face some serious issues regarding notices to beneficiaries, COBRA elections, and premium payments, all of which were temporarily suspended for the duration of the Outbreak Period. Without additional Federal guidance, administrators and employers could be facing a massive influx of work, deadlines and not the least, confusion.
“COBRA insurance fills a very specific need for people who lose their group healthcare coverage and are in potential crisis situations,” says John Robbins, Jr, President and CEO of DataPath. “The current situation emphasizes the need for a flexible COBRA software solution that allows administrators to address these needs when so many variables are in play, both now and in the future.”
About DataPath: For 40 years, DataPath has been a pivotal force in the employee benefits, financial services, and insurance industries. The company’s flagship DataPath Summit platform offers an integrated solution for managing CDH, HSA, Well-Being, COBRA, and Billing. Through its partnership with Accelergent Growth Solutions, DataPath also offers expert BPO services, automation, outsourced customer service, and award-winning marketing services.
