COBRA TPA

Recommended COBRA Administrators

 

An overview of recommended COBRA TPAs are listed below with rates updated 2023. Most of the administrators also offer Flexible Spending Account (FSA) administration which is a great benefit to add if not currently offering.  Often the FSA admin cost is offset by employer matched tax savings on the Social Security and Medicare taxes.

 

Here are some great TPA sources:

  • Comparative Solutions This is very small firm located in Tacoma but a very simple system and likely the most affordable. Like the most TPAs, COBRA fee is based on number of employees enrolled in medical plan, not total employee count.  For groups under 50, Comparative Solutions is often the best fit which is why we have them listed first. They service most of the small groups in our state that have Premera Blue Cross.  Flat $35/mo if less than 25 enrolled, $55 if 25-49 enrolled. FSA is $250 set up, $150 renewal plus monthly of $30 + $4.50 per employee that participants.  If five employees sign up, then $30 + $22.50.  That is, $880 year one, $780 after year one.   If 10 plus participants, then just $4.50 per employee, no $30 fee, annual cost for ten would be $534.   Contact:  Thea Feltzs, sales@comparativesolutions.com, (253) 617-7328

 

  • Sound Benefit Administration (SBA)  Popular company,  located in Poulsbo.  We have at least one client using them for COBRA admin.  Unlike most TPAs, they don’t administer 401ks, only COBRA, FSA and HSA.  They are good at what they do and least expensive for very small groups.  COBRA set up and renewal: $2 per benefit enrolled employee and monthly is $1.50 per benefit-enrolled employee.  FSA:  if 1-10 participants, $400 set up and $60 per month plus $100 renewal fee.  So if ten participants, $1120 first year and $820 renewal.  If 11-100, then $500 set up and $200 renewal, so if eleven participants, then $1292 year one, $992 renewal.

 

  • Allegiance This Montana based company is great to work with.   They administer self-funded insurance plans and COBRA and FSA (not 401k).  We have had a few clients over the years use them for COBRA admin.  They are always very helpful with our technical questions. COBRA:  $150 per year plus $15 per notice and $13 month per active participant with a $75 minimum. FSA is $4.25 per participating employee per month with a $75 minimum.  No set up fee.

 

  • Professional Benefit Services (PBS)  This is a great company located in Salem that administers many of our clients 401k plans.  Much more affordable on COBRA:  $300 Set up, $200 annual renewal plus $40 month (so that is $680/year).   FSA is a $450 set up, $220 per year plus $5 per month per participating employee with $55 monthly minimum.   Fees

 

  • Navia Benefits This is a very popular choice with fantastic online tools, but they are expensive at $2400 per year for COBRA and an additional $2400 per year for FSA.

 

We are not compensated on these plans and have no involvement in set up. If interested in pursuing further we can help provide contact information for the best internal people to work with at the administrator and we would of course assist with employee communications.

With COBRA, a company is allowed to charge 102% of actual rate with 2% being an admin fee to employer.  When you outsource this service, the admin company typically keeps the 2% fee.

While there are other companies to consider, these are the ones we have personally worked with and can confidently recommend.