Wednesday, January 18, 2012

BCBSNC ends Ceridian contract for COBRA services, communication begins

BCBSNC has announced that their contract with current COBRA administrator, Ceridian, will end on May 11, 2012. BCBSNC will start sending notifications to affected groups this week. The mailing will include this letter and FAQ.

Here’s what you need to remember about this change:
  • BCBSNC will administer COBRA for their underwritten health and dental groups beginning with 3/1/2012 effective dates.
  • Currently, all ASO groups must contract with a vendor of their choice for COBRA services. This will continue.
  • Groups that have products where membership and billing information is housed in other systems (i.e., ACS or in the case of groups with carved out products), would have to enter into a contract with a COBRA vendor to handle those non-BCBSNC products.
  • Dental Blue Select groups through ACS can contract with ACS for COBRA Administration services.
By providing COBRA services internally, BCBSNC hopes to reduce administrative costs and simplify the process for our group administrators. This chart illustrates the current process with Ceridian and the future process as BCBSNC begins handling the process internally.

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