5 Things to Look For in a COBRA Administration Partner

Keeping your company compliant with COBRA law isn’t just a nice-to-have—it’s something that could protect you from serious fines, legal headaches, and frustrated former employees. So, the moment you start evaluating COBRA administrators, the stakes are already high.

It’s easy to assume that all third-party administrators (TPAs) are more or less the same, yet what sets a reliable COBRA partner apart often comes down to how well they reduce risk, support your team, and ease the day-to-day.

If you’re weighing up a switch—or confirming your current provider still fits—this guide lays out five non-negotiables to look for. Let’s start with the one that could make or break your compliance record.

Let’s be honest—missing just one COBRA notice or deadline could cost your company hundreds of dollars per day, per person. And that’s not even counting the legal exposure or HR stress that comes next. So, it makes sense that the first thing to vet in any COBRA partner is how well they understand the rules—and keep up with the ones that change.

A capable administrator should be proactively monitoring legislative updates, not reacting to mistakes after they’ve happened. The best ones will walk you through what’s required, explain where your risks are, and build safeguards into every step of their process.

It’s not just about knowing the law—it’s about applying it properly, every time.

• They don’t offer documented audit trails or date-stamped notices.
• They rely heavily on manual tracking or spreadsheets.
• They can’t clearly explain how they stay current with federal regulations.
• You don’t get updates on rule changes or compliance deadlines.
• Their contract lacks service guarantees tied to compliance accuracy.

COBRA deadlines wait for no one—not your team, not your payroll cycle, and definitely not your inbox. That’s why a vendor who still sends reminders manually or relies on spreadsheets is one misstep away from a penalty. Automation, when done right, makes compliance not just manageable, but reliable.

With automated COBRA administration, you cut down on clerical errors, save serious time, and—most importantly—know that every participant gets exactly what they need, exactly when they need it.

Systems that streamline tasks like notice delivery, eligibility tracking, payment processing, and deadline alerts can take a huge weight off your HR team’s shoulders. They also give you peace of mind that compliance isn’t hanging on someone remembering to send an email.

• Automatically generate and send election notices
• Trigger reminders before premium deadlines
• Auto-terminate coverage after non-payment, with full audit trail
• Sync data from your payroll and HRIS tools in real-time
• Provide self-service portals for participants and admins
• Update compliance rules in the system as laws evolve

It’s one thing to have software doing the heavy lifting. But when something unexpected happens—like a former employee contesting their coverage—how quickly can you get a real answer from a real person?

That’s where some TPAs fall short. Many funnel your questions into generic call centers, where you end up repeating yourself or chasing updates that never come. When the pressure’s on, you don’t want a support ticket—you want a straight answer from someone who knows what they’re doing.

Great COBRA partners treat your team (and your participants) like people, not cases. They assign dedicated reps, give you direct lines of contact, and follow up without being asked.

Keeping COBRA records up-to-date gets a lot harder if your TPA can’t talk to the systems you already use. Whether it’s payroll, HRIS, or your benefits platform, everything works smoother when the data flows in both directions.

Good integration means you won’t be manually uploading spreadsheets or double-checking every update. Instead, you’ll have the option to automate or enter data to your liking which lowers the chance of errors and saves your team from repetitive admin.

If a vendor can’t offer these features, that’s a sign they may slow you down rather than lighten your load.

• Seamlessly pull termination data from your HRIS or vendor
• Track premium payments automatically
• Push eligibility updates without manual steps
• Offer secure API or SFTP file transfer options
• Provide integration support during onboarding

Plenty of vendors say they handle COBRA well, but what matters is how often they actually get it right. A strong track record shows more than years in business; it means satisfied clients, successful audits, and smooth transitions.

You don’t want to find out too late that your administrator wasn’t as dependable as they promised. Asking the right questions now can save you trouble down the road.

• Can you provide client references from similar-sized businesses?
• How often do you update clients on service performance or errors?
• What’s your average turnaround time for COBRA notices?
• How do you measure and report compliance accuracy?
• Do you offer any service-level guarantees?
• What kind of support will we receive? (Call centers, representatives, dedicated account management)?

When vendors are proud of their performance, they’re usually happy to prove it.

If your current TPA doesn’t check all five boxes—compliance expertise, full automation, responsive support, system integration, and a strong reputation—it might be time to reconsider.

Your COBRA process shouldn’t feel like a liability. It should run quietly in the background, handled by a team you trust. Whether you’re reviewing vendors or starting fresh, these five traits will help you spot the right fit.

Want a partner who already ticks the boxes? Learn more about our COBRA administration services or contact us to speak directly.