A single disruptive event anywhere in the world can trigger a supply chain nightmare for your company. According to a survey by the U.K. Business Continuity Institute, 73% of companies experienced a supply chain disruption in the last 12 months. These disruptions can lead to reduced market share, lost customers, and increased costs. In severe cases, companies may face downsizing or reduced employee hours, which can trigger COBRA events. That’s where COBRA administration services come in to ensure compliance and avoid costly penalties.
THE IMPACT OF SUPPLY CHAIN DISRUPTIONS
Supply chain disruptions can have far-reaching consequences, including:
- Reduced market share
- Loss of customers
- Damage to reputation or brand
- Increased costs and decreased sales
When these effects escalate, companies may need to downsize or reduce employee hours, creating COBRA qualifying events. However, COBRA administration is complex and non-compliance can result in significant penalties, such as:
- IRS excise taxes
- ERISA penalties of $110/day
- Participant lawsuits and attorneys’ fees
- Inability to terminate coverage
HOW KAPNICK CAN HELP WITH COBRA ADMINISTRATION
At Kapnick, we offer comprehensive COBRA administration services to handle all aspects of compliance. Our in-house team ensures a smooth process for both employers and employees, reducing your administrative burden.
Our Services Include:
- Service support
- Initial and qualifying event notifications
- Carrier notifications
- Premium collection and changes
- Termination notifications
- Monthly reporting
No one wants to face layoffs or reduced hours, but when circumstances like supply chain disruptions arise, having the right experts on your team makes all the difference.
Want to Learn More?
Reach out to explore how Kapnick’s COBRA administration services can support your business.
