The subsidy schedule feature is used when all or a portion of a member’s premium is paid by a third party. For example, an employer may be paying a portion of the member’s premium as part of a severance or benefit package.
You can enter subsidy amounts as a flat amount or a percentage of the premium. Also, you can enter a subsidy for only one plan of multiple plans for the same member.
- Example: A member’s medical plan may be subsidized, but their dental plan is not subsidized.
You can enter multiple subsides for the same plan, however the dates cannot overlap.
- Example: A subsidy for a medical plan is $150.00 Jan 1 – Jun 30 and $100.00 July 1 – Dec 31. You could not enter the second subsidy beginning on Jun 15.
ADDING A SUBSIDY
Step 1: From the member’s profile, select SUBSIDIES from the menu on the left side.
Step 2: Under the SUBSIDIES tab, you will then select the ADD A SUBSIDY SCHEDULE link.
Step 3: Set the schedule by entering the SUBSIDY SCHEDULE START date (generally the first of the month), and the SUBSIDY SCHEDULE END date. In the SUBSIDY SCHEDULE AMOUNT TYPE field, select FLAT AMOUNT or PERCENTAGE. Depending on your selection, enter either a percentage or dollar amount for the subsidy in the AMOUNT FIELD. In the INSURANCE TYPE field, select the kind of plan being subsidized from the list. Click the OK button when you are ready to save the SUBSIDY SCHEDULE.
***Note: When a member is receiving a subsidy for a plan with coverage that begins at the time of their qualifying event, the system automatically calculates the prorated subsidy amount from the first day of the month. For this calculation to be completed correctly, you must enter the first day of the month as the subsidy schedule start date. This does not grant the member additional COBRA coverage days.***
Step 4: A subsidy schedule has now been created and saved to the member’s record. At this point, you may add another subsidy, edit an existing subsidy, or delete an existing subsidy.
EDITING A SUBSIDY
Step 1: From the SUBSIDIES tab of the member’s record, select the EDIT link associated with the existing subsidy to be edited.
Step 2: In the SUBSIDY SCHEDULE section, you can adjust the SUBSIDY SCHEDULE END date which is the date when the subsidy becomes inactive. You should leave the SUBSIDY SCHEDULE START date at the first day of the month for the system calculation to work correctly. The SUBSIDY SCHEDULE TYPE is always set to EMPLOYER SUBSIDY. In the SUBSIDY SCHEDULE AMOUNT TYPE field, select FLAT AMOUNT or PERCENTAGE. Depending on your selection, enter either a percentage or dollar amount for the subsidy in the AMOUNT FIELD. In the PLAN TYPE field, select the kind of plan being subsidized from the list. Click UPDATE to save the SUBSIDY SCHEDULE.
DELETING A SUBSIDY
Step 1: From the SUBSIDIES tab of the member’s record, select the DELETE link associated with the existing subsidy to be removed.
Step 2: Choose DELETE in the SUBSIDY SCHEDULE DELETE CONFIRMATION window to remove the selected subsidy.
Other Helpful Topics: COBRA: Employer Login, COBRA: Adding a QB, COBRA: Adding a Subsidy, COBRA: Adding an NPM, COBRA: How to Pull Remittance Reports, COBRA: Employer Portal Overview, COBRA: Searching for QBs and Viewing Profiles