COBRA Administration

At New Hampshire Local Government Center (LGC), we are committed to being a provider of high quality benefits and risk-management services. Through LGC HealthTrust, we partner with you to make providing those services to your covered employees a seamless process.

We particularly understand the growing complexities of both COBRA and retiree billing administration. That’s why we now offer the following value-added services to our Member Groups.

INDIVIDUAL BILLING FOR COBRA MEMBERS
At LGC HealthTrust, we already proactively assist you with meeting the initial and ongoing notification requirements of COBRA. COBRA is the federal law requiring employers to offer covered employees and their family members the opportunity for a temporary extension of medical and/or dental coverage at their own expense due to certain qualifying events.

As an added convenience, you may now opt to have LGC HealthTrust provide individual billing administration for your COBRA qualified beneficiaries.

As part of our COBRA administration service, LGC HealthTrust:

• Directly bills COBRA qualified beneficiaries who have chosen to take advantage of extended coverage.
• Collects contribution payments from COBRA participants, relieving Member Groups of the administrative burden of doing so.
• Generates informative monthly reports for Member Groups listing COBRA qualified beneficiaries who have been billed by LGC HealthTrust, along with their medical and/or dental benefit plan, coverage type and contribution amounts.

Although COBRA qualified beneficiaries are still considered part of your Member Group, HealthTrust handles all related COBRA paperwork – from initial election through ongoing maintenance to cancellation and, if applicable, reinstatement. This eliminates the responsibilities of tracking COBRA grace periods and notifying LGC HealthTrust whenever COBRA payments are late.

Guidelines for Individual Billing for COBRA Members
Following are important guidelines you need to know when considering HealthTrust’s individual billing administration for your COBRA qualified beneficiaries:

• This service applies to all LGC HealthTrust-covered medical and/or dental COBRA beneficiaries.
• As allowed by COBRA, an administrative fee of two percent will be charged to each COBRA qualified beneficiary to cover the cost of this service. There is no additional cost to the Member Group.
• COBRA billing must apply to all LGC HealthTrust covered members within a Member Group.
• In addition to billing and collection services, LGC HealthTrust will manage all enrollment and membership changes directly with COBRA qualified beneficiaries, leaving you more time to focus on other priorities.
• A 60-day advance notice is required to initiate LGC HealthTrust’s individual billing service for COBRA qualified beneficiaries.
• LGC HealthTrust COBRA administration will follow COBRA guidelines regarding contribution payment. COBRA coverage will suspend for any invoice not paid in full by the first day of the coverage period. If payment is not received within the 30-day grace period, COBRA coverage will be cancelled with no reinstatement rights, as allowed by COBRA.

BILLING ADMINISTRATION FOR RETIREES
Administering benefits for your retired employees is a challenging task. The added accounting burden of these responsibilities – collecting payments, dealing with insufficient funds and acting as a collection agency – can be overwhelming. Now, LGC HealthTrust can handle all retiree billing and collection for you!

At no additional cost to you or the retiree, LGC HealthTrust:

• Issues invoices directly to retirees and/or the Member Groups.
• Collects the required coverage contributions from the individual retiree, the Member Group and the New Hampshire Retirement System (NHRS), if applicable.
• Generates easy-to-read monthly reports that list each billed retiree, their benefit plan and coverage type. Additionally, a listing of the Member Group’s, the retiree’s and NHRS's coverage contribution amounts are provided for each billing period.

For Member Groups Utilizing LGC HealthTrust to Administer New Hampshire Retirement System Payments
If you currently utilize HealthTrust to administer NHRS payments and you would also like LGC HealthTrust’s retiree billing administration service, please know that:

• LGC HealthTrust will bill all parties for their applicable portion of the contribution. (Examples: If a retiree is responsible for 80 percent and you pay 20 percent toward coverage costs, LGC HealthTrust will bill each contributor their appropriate percentage. Or, if NHRS pays a $200 subsidy toward a retiree’s coverage costs while you pay $100 and the retiree pays $100, HealthTrust will bill all three parties their required contribution.)

For Member Groups That Do Not Utilize LGC HealthTrust to Administer New Hampshire Retirement System Payments
If you currently do not have LGC HealthTrust administer NHRS payments and you would now like to use LGC HealthTrust’s billing administration service for retirees, please know that:

• LGC HealthTrust will coordinate all subsidy payments directly with the NHRS.
• LGC HealthTrust will bill all parties for their applicable portion of the contribution. (Examples: If a retiree is responsible for 80 percent and you pay 20 percent toward coverage costs, LGC HealthTrust will bill each contributor their appropriate percentage. Or, if NHRS pays a $200 subsidy toward a retiree’s coverage costs while you pay $100 and the retiree pays $100, LGC HealthTrust will bill all three parties their required contribution.)
• A new Retirement Annuity Deduction Authorization for Retiree Insurance Benefits form (HT-003) must be completed by each of your existing retirees.

Guidelines for Billing Administration for Retirees
Here are important guidelines to keep in mind when considering LGC HealthTrust’s billing administration service for your retirees:

• Participating Member Groups must complete a Retiree Contribution Allocation Table upon electing this service and whenever rate changes occur.
• This service will apply to all retirees in a participating Member Group.
• Member Groups must pay their portion of retiree coverage costs exactly as billed by LGC HealthTrust. All pending adjustments will be reflected on future invoices.
• Each participating Member Group will continue to maintain all related enrollment paperwork for their retirees.

PLEASE NOTE: Member Groups will be notified prior to cancellation of coverage due to nonpayment for any individual retiree and their covered dependents. Ultimate responsibility for payment of retiree coverage rests with Member Groups. Retirees who are cancelled for nonpayment may not be eligible for reinstatement.

GETTING STARTED
To enroll in LGC HealthTrust’s billing services, simply contact your LGC Account Representative directly or call 800.852.3358. It’s as simple as that!